Darla drew a $100 check on ABC Bank payable "to the order of Pamela." Pamela cashed the check at First Bank.
First Bank is an agent of Pamela until the drawee bank pays the check.

Question

Quizplus · Accepted Answer

First Bank acts as Pamela's agent until the drawee bank (ABC Bank) pays the check. This is because First Bank is responsible for collecting the funds from ABC Bank on Pamela's behalf.

Darla Drew a $100 Check on ABC Bank Payable "To