Sylvia draws a check on ABC Bank payable "to the order of Willow Watson." Willow indorses it and deposits it in First Bank.First Bank is a:

Question

Quizplus · Accepted Answer

First Bank is a collecting bank because it is the bank that is receiving and processing the check for deposit on behalf of Willow Watson, who is the payee. The drawee bank would be ABC Bank, which is the bank that the check is drawn on, and the payor bank would be the bank that actually pays out the funds from the check. "Neighborhood bank" is not a relevant term in this context.

Sylvia Draws a Check on ABC Bank Payable "To the Order