A check is postdated to November 20 even though the check was written out on November 3 of the same year. The drawer provided notice to the bank of the postdated check. Which of the following is correct under the Revised Article 3 of the Uniform Commercial Code?
a. The check is payable on demand on or after November 3 because part of the definition of a check is that it be payable on demand.
b. The check ceases to be demand paper and is payable on November 20.
c. The postdating destroys negotiability.
d. A bank that pays the check is automatically liable for early payment.
Answer: B
Tax
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- Income in respect of a cash-basis decedent
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