Fact Pattern 19-3
Ryley draws a check,on his account in Second National Bank in New York,payable to Tuner TV,Inc. ,in San Francisco.Tuner deposits the check in its ac?count at US Bank.US deposits the check in the Federal Reserve Bank of San Francisco,which transfers it to the Federal Reserve Bank of New York.That Federal Reserve bank sends the check to Second National.
-Refer to Fact Pattern 19-3.When US Bank received the check,it was required to pass it on
A)before midnight of the next banking day.
B)before midnight of the next day,whether or not it was a "banking" day.
C)before noon of the next banking day.
D)within five business days.

Question

Fact Pattern 19-3 
Ryley draws a check,on his account in Second National Bank in New York,payable to Tuner TV,Inc. ,in San Francisco.Tuner deposits the check in its ac?count at US Bank.US deposits the check in the Federal Reserve Bank of San Francisco,which transfers it to the Federal Reserve Bank of New York.That Federal Reserve bank sends the check to Second National.
-Refer to Fact Pattern 19-3.When US Bank received the check,it was required to pass it on
A)before midnight of the next banking day.
B)before midnight of the next day,whether or not it was a "banking" day.
C)before noon of the next banking day.
D)within five business days.

Quizplus · Accepted Answer

Under the Uniform Commercial Code, US Bank is required to pass on the check before midnight of the next banking day. This is known as the "midnight deadline."