When a bank pays the holder of a properly drawn check, it is said to have ________ the check.

Question

Quizplus · Accepted Answer

When a bank pays a properly drawn check, it is said to have honored the check. Option A, certified, refers to when a bank confirms the authenticity of a check and sets funds aside to ensure payment. Option B, indorsed, refers to when a payee signs the back of a check to transfer ownership. Option D, collected, refers to the process of a bank gathering the funds from the payer's account to cover the check.

When a Bank Pays the Holder of a Properly Drawn