Which of the following is true for a stop-payment order to be effective?
A)The order can come up to an hour after the check has been honored.
B)The bank must receive the order in a way that gives the bank a reasonable opportunity to act.
C)The bank can receive the order after it has certified the check.
D)The order must be in a written format for the bank to be able to recognize it as the check corresponding to the stop-payment order.

Question

Quizplus · Accepted Answer

To be effective,a payor bank must receive the stop-payment order in time to give the bank a reasonable opportunity to act on the order.This means that the bank must receive the stop-payment order before it has paid or certified the check.

Which of the Following Is True for a Stop-Payment Order