Fact Pattern 27-2 Lisa Writes a Check on Her Account at Metro Bank

question 59

Multiple Choice

Fact Pattern 27-2
Lisa writes a check on her account at Metro Bank to Niklas to pay a debt. Niklas negotiates the check by indorsement to O'Leary, who presents it for payment to Prime Bank.
-Refer to Fact Pattern 27-2. If Prime Bank dishonors the check, O'Leary can obtain payment from Niklas​

• A) ​if O'Leary timely notifies Niklas.
• B) ​only if Lisa refuses to pay the check.
• C) ​only to the extent that Lisa overpaid her debt to Niklas.
• D) ​under no circumstances.

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