A bank's duty to honor its customer's check is subject to the stipulation that the account has sufficient funds to pay the check.

Question

Quizplus · Accepted Answer

This is known as the principle of "payment of checks against sufficient funds." If the account does not have sufficient funds, the bank may choose to either honor the check and charge an overdraft fee or return the check as insufficient funds.

A Bank's Duty to Honor Its Customer's Check Is Subject