If the Party That Dishonors an Instrument Is a Collecting

question 38

Multiple Choice

If the party that dishonors an instrument is a collecting bank, when must notice of the dishonor be given to a secondarily liable party by the collecting bank?

• A) Before midnight of the next day
• B) Within 48 hours
• C) Within 7 days
• D) Within 10 days
• E) Within 30 days

---

Definitions:

Clan

A social group characterized by shared ancestry, often forming a part of larger tribal or community structures.

Lineage

The direct descent from an ancestor; ancestry or pedigree.

Descent Group

A social group whose members claim common ancestry; a fundamental unit in the organization of many societies.

Membership Restriction

Rules or criteria set by an organization or community that limit or define who can join or participate in the group.