Baer writes a check for $500 "payable to Cary" drawn on Baer's account at Debit Bank. Cary indorses and sells the check to Esau, who deposits the check in his account at Fidelity Bank. Fidelity dishonors the check. Baer or Cary may be liable for payment of the check if
A)the drawer of the check does not repudiate the dishonor.
B)timely notice of dishonor is given.
C)more than thirty days have elapsed since the check was written.
D)the check was not properly presented for payment.

Question

Quizplus · Accepted Answer

Timely notice of dishonor is crucial for holding the indorser (Cary) or the drawer (Baer) liable. If Fidelity Bank properly notifies Cary or Baer about the dishonor in a timely manner, either could be held responsible for the payment.

Baer Writes a Check for $500 "Payable to Cary" Drawn