Fact Pattern 26-1A
Roy writes a check on his account at State Bank to Teri to pay a debt. Teri negotiates the check by indorsement to Uma, who presents it for payment to Vital Bank.
-Refer to Fact Pattern 26-1A. If State Bank dishonors the check, Uma can obtain payment from Teri

Question

Fact Pattern 26-1A 
Roy writes a check on his account at State Bank to Teri to pay a debt. Teri negotiates the check by indorsement to Uma, who presents it for payment to Vital Bank.
-Refer to Fact Pattern 26-1A. If State Bank dishonors the check, Uma can obtain payment from Teri

Quizplus · Accepted Answer

If State Bank dishonors the check, Uma can only obtain payment from Teri if Uma notifies Teri in a timely manner. This is because Teri is the previous indorser and might be held liable for the dishonored check. Therefore, Uma needs to give Teri the opportunity to resolve the situation before pursuing other options.