A drawee bank does not have the right to charge a payable check to a drawer's account if this will create an overdraft in the account.

Name: A drawee bank does not have the right to charge a payable check to a drawer's account if this will create an overdraft in the account.
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Question

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A drawee bank can charge a payable check to a drawer's account even if it results in an overdraft, as long as the bank has agreed to provide overdraft protection or the account terms allow for it.

A Drawee Bank Does Not Have the Right to Charge