When the depositor deposits a check to a checking account, the bank becomes his agent for collection of the check.

Question

Quizplus · Accepted Answer

When a depositor deposits a check into their checking account, the bank becomes their agent for collecting the funds from the check. This means that the bank will process the check and credit the depositor's account for the amount of the check, less any applicable fees or holds. The depositor retains ownership of the check, but the bank acts as their representative to collect funds from the check issuer's bank.

When the Depositor Deposits a Check to a Checking Account