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What Is the Effect of a Payor Bank's Dishonor of a Check

Question 50

Multiple Choice

What is the effect of a payor bank's dishonor of a check?


A) It returns the check.
B) The provisional credits must be reversed.
C) The customer who deposited the item for collection must cover the item and seek recovery from the drawer or indorsers.
D) All of these will occur.

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