Fact Pattern 17-2
Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 17-2.If Prime Bank dishonors the check, O'Leary can obtain payment from Niklas

Question

Fact Pattern 17-2
Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 17-2.If Prime Bank dishonors the check, O'Leary can obtain payment from Niklas​

Quizplus · Accepted Answer

O'Leary has the right to obtain payment from Niklas if they notify him in a timely manner of the dishonor of the check. This is in accordance with the rules of the Uniform Commercial Code (UCC) regarding the rights of subsequent holders of negotiable instruments.

Fact Pattern 17-2 Lisa Writes a Check on Her Account at Metro Bank