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 21-3.If Second National Bank failed to meet its deadline for dishonoring or returning the check,it would be accountable for
A)neither the amount of the check nor the cost of its transfer be?tween banks.
B)the amount of the check and the transfer cost.
C)the amount of the check but not the transfer cost.
D)the transfer cost only.

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 21-3.If Second National Bank failed to meet its deadline for dishonoring or returning the check,it would be accountable for
A)neither the amount of the check nor the cost of its transfer be?tween banks.
B)the amount of the check and the transfer cost.
C)the amount of the check but not the transfer cost.
D)the transfer cost only.

Quizplus · Accepted Answer

Second National Bank would be accountable for the amount of the check if it failed to meet its deadline for dishonoring or returning the check, but not for the transfer cost.