A Drawee Bank's Refusal to Certify a Check Constitutes Dishonor

question 8

True/False

A drawee bank's refusal to certify a check constitutes dishonor of the instrument.

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Definitions:

Lending Standards

Regulations and criteria set by financial institutions to determine the qualification of borrowers for loans.

Alt-A Loans

Loans extended with little documentation or verification of the borrowers’ income, employment, and other indicators of their ability to repay. Because of this poor documentation, these loans are risky.

Economic Crisis

A situation where an economy faces a sudden downturn brought on by a financial crisis, resulting in high unemployment and inflation.

Foreclosure Rates

The frequency at which properties are forced to be sold due to the owner's failure to pay the mortgage.