Dan drew a $100 check on ABC Bank payable "to the order of Peg Buncy." Peg cashed the check at National Bank. National Bank is an agent of Peg until the drawee bank pays the check.

Question

Quizplus · Accepted Answer

National Bank acts as Peg's agent in the collection process until the drawee bank (ABC Bank) pays the check, at which point the agency relationship ends and the transaction is completed.

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