Under Article 4,which of the following refers to the drawee-payor bank's deadline on a check?
A)Midnight deadline
B)Clearing house
C)Banking day
D)Afternoon deadline

Question

Quizplus · Accepted Answer

Under Article 4,the drawee-payor bank must settle for the check before midnight of the banking day of its receipt of the check,which means that it must give the depositary bank funds or a credit equal to the amount of the check.Once it settles for the check,the drawee-payor bank has until midnight of the banking day after the banking day of receipt to pay the check or to return the check or send notice of dishonor.This deadline for the drawee-payor bank's action on the check is known as the bank's "midnight deadline."

Under Article 4,which of the Following Refers to the Drawee-Payor