If a Bank Cashes a Check That Is Later Returned

question 59

Multiple Choice

If a bank cashes a check that is later returned for insufficient funds, whom does it charge to recover the amount lost?

• A) The check's maker
• B) The person who received the money
• C) The person to whom the check was written
• D) The person who last endorsed the check

---

Definitions:

Invalidates

To make something legally null and void or to render it ineffective by establishing its incorrectness or inapplicability.

Community Property

A form of ownership between married couples in some states, where assets acquired during the marriage are considered jointly owned.

Separate Property

Property that a spouse owned before the marriage plus inheritances and gifts acquired by the spouse during the marriage.

No-Fault Divorce

A divorce in which neither party is deemed to be at fault for the breakdown of the marriage.