[Cash Availability] Arturo, who owns a vineyard in Northern California, deposits two checks in his local bank on Monday. One check is from Simon, who lives in the area, and the other is from Zina, who lives in Atlanta. Arturo needs to write a check to a supplier from his local account.
-Are the funds from both checks required to be available at the same time for Arturo to use?
A) Yes, because they were deposited at the same time.
B) No, because they were written from two different individuals.
C) Probably not, because the checks will be drawn on banks within different Federal Reserve Bank areas, thus, the requirements for availability are different.
D) Yes, because the checks will be drawn on the same bank.
E) Yes, because the UCC requires that all funds be available for use within twenty-four hours of deposit.
Correct Answer:
Verified
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