Asked by Alyssa Grant on May 28, 2024
Verified
Which statement is true regarding Pedro's statement that once the check had been dishonored, it could not be presented again?
A) He was correct.
B) He was incorrect. The holder can attempt to resubmit the check at a later date.
C) He was incorrect. The holder may attempt to resubmit the check at a later date only if all endorsers of the check have been notified of the dishonor.
D) He was incorrect. The holder may resubmit the check only if notice is given to the drawer.
E) He was incorrect. The check may be presented again for payment only if notice has been given both to endorsers and the drawer.
Overdraft Protection
A financial service that prevents checks, ATM withdrawals, and other debit transactions from causing an account balance to fall below zero, often involving a fee.
Dishonored Check
A check that a bank refuses to cash or pay because there are insufficient funds in the account.
Sufficient Funds
Refers to having enough money in an account to cover checks or other withdrawal requests.
- Understand the legal and operational procedures related to the dishonorment of checks.
Verified Answer
EC
Erica CajamarcaMay 29, 2024
Final Answer :
B
Explanation :
Pedro was incorrect because the holder of a check can indeed attempt to resubmit the check at a later date, hoping that the drawer will have sufficient funds in their account to cover the check at that time. There is no legal prohibition against presenting a dishonored check again.
Learning Objectives
- Understand the legal and operational procedures related to the dishonorment of checks.