Which of the following is true regarding a drawee's liability on a check or a draft?
A)The drawee is primarily liable in all cases.
B)The drawee is secondarily liable because the holder must first proceed against the drawer.
C)The drawee is primarily liable if it accepts (certifies)a check.
D)The drawee is secondarily liable only in doubtful cases.

Question

Quizplus · Accepted Answer

If the drawee bank certifies the check,it becomes primarily,or absolutely,liable for paying the check as it reads at the time of its acceptance,and its acceptance discharges the drawer and indorsers who indorsed before the acceptance.

Which of the Following Is True Regarding a Drawee's Liability