Quint brings a draft drawn on Regional Credit Union and "payable to Silo LLC" to Regional. The credit union stamps "accepted" on the face of the draft, signs it, and dates it. Regional is
A)no longer liable for payment of the draft.
B)secondarily liable for payment of the draft.
C)obligated to pay the draft when it is presented for payment.
D)liable for payment of the draft thirty days after issue.

Question

Quizplus · Accepted Answer

When a bank or credit union stamps "accepted" on a draft and signs it, this constitutes an agreement to pay the draft when it is presented for payment, making the institution primarily liable.

Quint Brings a Draft Drawn on Regional Credit Union and "Payable