Asked by Victoria Matthews Medina on Jul 15, 2024
Verified
Which of the following is true for a stop-payment order to be effective?
A) The order can come up to an hour after the check has been honored.
B) The bank must receive the order in a way that gives the bank a reasonable opportunity to act.
C) The bank can receive the order after it has certified the check.
D) The order must be in a written format for the bank to be able to recognize it as the check corresponding to the stop-payment order.
Effective
Having the intended or expected effect; capable of bringing about a desired result.
Reasonable Opportunity
A legal concept that refers to the fair chance given to all parties involved in a proceeding to present their case, access relevant information, and respond to evidence against them.
Stop-Payment Order
A request made to a bank to cancel a check or payment before it has been processed.
- Gain familiarity with the requirements and periods pertinent to stop-payment orders.
Verified Answer
PA
Peggy AndrisJul 16, 2024
Final Answer :
B
Explanation :
To be effective,a payor bank must receive the stop-payment order in time to give the bank a reasonable opportunity to act on the order.This means that the bank must receive the stop-payment order before it has paid or certified the check.
Learning Objectives
- Gain familiarity with the requirements and periods pertinent to stop-payment orders.