A Check Is Drawn on Jones Bank by Tamara and Made

question 66

Multiple Choice

A check is drawn on Jones Bank by Tamara and made payable to the order of Chris. Chris indorses it "for deposit only, Acct. 2275, Chris" and gives it to Plainer Bank for deposit. Plainer stamps "pay any bank" on the check along with its indorsement and negotiates it to Stone Bank. Stone Bank simply stamps "Stone Bank" and negotiates it to SmallTown Bank. If SmallTown wants to negotiate it to the electric company to pay its bill, can it?

• A) Yes, because the restrictive indorsement only applied to earlier indorsees.
• B) Yes, because the bank was not responsible for checking more than one indorsement.
• C) No, because an item restrictively indorsed with words such as "pay any bank" is locked into the bank collection system.
• D) No, because the bank must issue its own check for its own bills.

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Definitions:

Effective Followers

Individuals who actively support and contribute to their leaders' vision while demonstrating critical thinking and initiative.

Relative Powerlessness

A perception or state where individuals or groups feel they lack control or influence over situations or outcomes.

Challenging

Presenting difficulty in a way that tests one's abilities or determination.

Negative Light

A perspective or situation perceived unfavorably, often resulting in disapproval or criticism.