Elian wrote a $5000 check payable to his nephew Jose on January 1.Elian gave Jose the check on January 3.Elian died January 6.The drawee bank learned of Elian's death on January 7.There is no stop payment order on the check.Which statement is correct?

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), the bank can pay the check until the death of the drawer is known to the bank, and no stop payment order has been placed. In this case, the death was known to the bank on January 7, so the bank can pay the check until the close of business on the next banking day, which is January 17. Therefore, option C is correct.

Elian Wrote a $5000 Check Payable to His Nephew Jose