When Processing a Check, Sterling Bank Encodes Information, Such as the Amount

Multiple Choice

When processing a check, Sterling Bank encodes information, such as the amount of the check, on the item. Sterling thereby warrants to any subsequent bank or payor​

A) ​the item has been returned to the drawer.
B) ​nothing.
C) ​the check has been processed manually.
D) ​the encoded information is correct.