Renee made out a check payable to Dawn. Dawn had the check certified by First National, the drawee bank, and then indorsed it to Quatro, who is the present holder. What effect does certification have on the parties?

Question

Quizplus · Accepted Answer

Certification of a check by the drawee bank (First National) means the bank accepts the check and becomes primarily liable for its payment. This discharges both the drawer (Renee) and the indorser (Dawn) from liability.

Renee Made Out a Check Payable to Dawn