Peter draws a check on his account in Third National Bank payable to the order of Stella.When Peter draws the check,he gets Third National Bank to certify the check.Stella presents the check to Third National Bank for payment but the bank refuses to honor the check.What is the result?

Question

Quizplus · Accepted Answer

At the time a check or other draft issues,no party is primarily liable on it.Usually,the drawee bank pays a check when it is presented for payment and no person becomes primarily liable.However,the drawer or a holder of the check may ask the drawee bank to accept or certify the check.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.

Peter Draws a Check on His Account in Third National