Notice of Dishonor of an Instrument Must Be Given

question 69

Multiple Choice

Notice of dishonor of an instrument must be given:

• A) by a bank before midnight of the third banking day following the banking day on which it receives notice of dishonor.
• B) by a bank before midnight on the next banking day following the banking day on which it receives notice of dishonor.
• C) by a nonbank, with respect to an instrument taken for collection, within three business days following the day on which it received notice.
• D) in all situations within seven calendar days following the day on which dishonor occurred.

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Definitions:

Restraint

The act of controlling, limiting, or holding back actions or responses, often to maintain discipline or adhere to rules.

Document Design

The process of creating a document layout that effectively communicates its content to the reader.

Typeface

The physical design of letters, numbers, and other text characters (font and typeface are often used interchangeably, although strictly speaking, a font is a set of characters in a given typeface).

Margins

The blank spaces surrounding the text on a page or the difference between the cost and selling price of goods or services.