If a bank does not honor funds when there is a sufficient amount of funds in a drawer's account to pay a properly payable check,it is liable for wrongful dishonor.

Question

Quizplus · Accepted Answer

This is a correct statement as per the Uniform Commercial Code (UCC) which governs banking transactions in the United States. If a bank wrongfully dishonors a properly payable check despite there being sufficient funds in the drawer's account, it can be held liable for damages incurred by the drawer.

If a Bank Does Not Honor Funds When There Is