A bank customer may encode its own checks, and if it does, the encoder warrants to any subsequent collecting bank and to the payor that information is properly encoded.

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code (UCC), if a bank customer encodes its own checks, it is making a warranty to any subsequent collecting bank and the payor that the information is properly encoded. Therefore, the statement is true.

A Bank Customer May Encode Its Own Checks, and If