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Eli Draws a Check for $1,500 on Town Bank

Question 6

Multiple Choice

Eli draws a check for $1,500 on Town Bank. The check is made payable to the order of Carmen. Carmen endorses and sells the check to Nita. At Nita's request, Town Bank certifies the check. In this scenario, which of the following is a true statement?


A) Carmen becomes secondarily liable on the check.
B) Eli becomes secondarily liable on the check.
C) Town Bank becomes primarily liable on the check.
D) Eli becomes primarily liable on the check.

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