When a check is deposited in the payee's own account in a depository bank, any settlement given by the depository bank is final.

Question

Quizplus · Accepted Answer

It is likely that a check will be deposited in the payee's own account in another bank other than the payor bank. That bank, known as the depositary bank, acts as its customer's agent to collect the money from the payor bank. Any settlement given by the depositary bank in this case is provisional (not final).

When a Check Is Deposited in the Payee's Own Account