If a bank does not honor a check when there are sufficient funds in the drawer's account to pay a properly payable check, it is liable for wrongful dishonor.

Question

Quizplus · Accepted Answer

This is correct according to the Uniform Commercial Code (UCC) Section 4-402. If a bank fails to honor a properly payable check, it is required to pay damages to the account holder for any resulting losses or damages.

If a Bank Does Not Honor a Check When There