When a Drawee Bank Is Presented with a Check Drawn

question 47

Multiple Choice

When a drawee bank is presented with a check drawn on a customer's account in which there are not sufficient funds to pay the check,the bank:

• A) must pay the check if the customer is an established customer
• B) is not permitted to pay the check
• C) must notify the drawer prior to deciding whether or not to pay the check
• D) may choose whether to pay the check,but cannot charge interest on the overdraft unless the customer previously agreed to the payment of interest in the event of an overdraft
• E) may choose whether to pay the check,and can charge interest on the overdraft in all circumstances

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