A check is drawn on Jones Bank by Tamara and made payable to the order of Chris. Chris indorses it "for deposit only, Acct. 2275, Chris" and gives it to Plainer Bank for deposit. Plainer stamps "pay any bank" on the check along with its indorsement and negotiates it to Stone Bank. Stone Bank simply stamps "Stone Bank" and negotiates it to SmallTown Bank. If SmallTown wants to negotiate it to the electric company to pay its bill, can it?
A) Yes, because the restrictive indorsement only applied to earlier indorsees.
B) Yes, because the bank was not responsible for checking more than one indorsement.
C) No, because an item restrictively indorsed with words such as "pay any bank" is locked into the bank collection system.
D) No, because the bank must issue its own check for its own bills.
Correct Answer:
Verified
Q37: A depositary bank is any bank handling
Q38: The Electronic Funds Transfer Act governs electronic
Q39: Under Revised Article 4, if a bank
Q40: Doug takes a $500 check drawn by
Q41: If Ben Stewart has a checking account
Q44: A system for electronic funds transfers (EFT)
Q45: If you lose your wallet along with
Q46: A check drawn on a bank is
Q46: A payment order for a wholesale funds
Q47: Which of the following is true with
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents