Brad wrote a check to Clara for $1,000 on his account at First Bank.He then took it to his bank for certification.The bank wrote "certified" on the face of the check.Brad then gave the check to Clara.When Clara took the check to First Bank, they refused to pay, claiming that there was not enough money in Brad's account to cover the check.Which of the following is correct?
A) First Bank must pay the check, but they may charge Brad a fee to do so.
B) Clara has no recourse under the circumstances.
C) Brad is secondarily liable on the check, because he is the drawer.
D) First Bank is primarily liable on the check, because it has already accepted it.

Question

Quizplus · Accepted Answer

When a bank certifies a check, it effectively guarantees payment by marking the check as "certified." This means the bank has set aside the funds for the check, making the bank primarily liable for its payment.

Brad Wrote a Check to Clara for $1,000 on His