Assume Doug and Eddie both have checking accounts at Local Bank.On Monday morning,Eddie deposits a check from Doug written on Doug's account at Local Bank.The bank issues a provisional credit to Eddie's account.When is the check considered honored?

Question

Quizplus · Accepted Answer

The check is considered honored if the bank does not dishonor it by the opening of business on Wednesday morning. This is because banks typically have two business days to decide whether or not to dishonor a check deposited into an account. Therefore, Eddie's account will be credited provisionally on Monday, and on Tuesday, the bank will decide whether or not to honor the check. If the bank does not dishonor the check by Wednesday, then it is considered honored.

Assume Doug and Eddie Both Have Checking Accounts at Local