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Peter Draws a Check on His Account in Third National

Question 2

Multiple Choice

Peter draws a check on his account in Third National Bank payable to the order of Stella.When Peter draws the check,he gets Third National Bank to certify the check.Stella presents the check to Third National Bank for payment but the bank refuses to honor the check.What is the result?


A) Third National Bank becomes primarily or absolutely liable on the check.
B) Peter is primarily liable on the check and Third National Bank is secondarily liable on the check.
C) Both Peter and Third National Bank are primarily liable on the check.
D) Third National Bank has no contractual liability on the check whatsoever.

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