If a drawer and a payee or holder have accounts at different banks, the payer bank and depository bank are not the same bank. In this case, the check is called a(n) ________.

Question

Quizplus · Accepted Answer

When a drawer and payee have accounts at different banks, the check is considered an "on them" item, which means the payer bank will send the check to the depository bank for payment, rather than processing it internally. This is because the payer bank does not have a direct relationship with the depository bank.

If a Drawer and a Payee or Holder Have Accounts