When a Payor Bank Gets an Item Payable from a Customer's

question 90

Multiple Choice

When a payor bank gets an item payable from a customer's account with insufficient funds,the bank may:

• A)pay the item and charge it to the customer's account even though an overdraft is created.
• B)dishonor the item and return it.
• C)Either (a) or (b).
• D)Neither (a) nor (b).

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