[Bad Check] Alana, a bank teller, saw that customer Liam did not have sufficient funds in his account to cover a check presented for payment. Alana was new and was confused about what to do with the check. She asked the bank manager, Pedro, about any available options. Pedro told her that the bank was required by law to dishonor the check, the check should be returned to the holder with a notation that it had been dishonored, and that it could not be presented again. Alana asked Pedro if there were any policies the bank could institute to provide customers with overdraft protection, and Pedro answered that those were prohibited by law.
-Which statement is true regarding Pedro's statement that once the check had been dishonored, it could not be presented again?
A) He was correct.
B) He was incorrect. The holder can attempt to resubmit the check at a later date.
C) He was incorrect. The holder may attempt to resubmit the check at a later date only if all endorsers of the check have been notified of the dishonor.
D) He was incorrect. The holder may resubmit the check only if notice is given to the drawer.
E) He was incorrect. The check may be presented again for payment only if notice has been given both to endorsers and the drawer.
Correct Answer:
Verified
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