Callie drew a check payable to the order of Janice on American Bank.Janice indorsed the check and sold it to Ned,who took the check to American Bank and requested that the bank certify the check.The bank did so.Later,Ned presented the check for payment,but American Bank refused to pay.Which other parties may Ned sue?

Question

Quizplus · Accepted Answer

Under the given circumstances,Ned can sue American Bank.Normally,a drawee bank is not obligated to certify a check.When a drawee bank does certify a check,it substitutes its undertaking (promise)to pay the check for the drawer's undertaking and becomes obligated to pay the check.

Callie Drew a Check Payable to the Order of Janice