When a Payor Bank Gets an Item Payable from a Customer's

When a payor bank gets an item payable from a customer's account with insufficient funds, the bank:

A) may pay the item and charge it to the customer's account even though an overdraft is created.
B) may dishonor the item and return it.
C) Either (a) or (b) .
D) Neither (a) nor (b) .