Payor Bank’s Relationship to Its Customers
Learn about the rules governing a payor bank’s relationship with its customers, including charging the customer’s account, wrongful dishonor, and the bank’s liability for checks and overdrafts.
Transcript
In other lessons, we discussed the check-collection process and the rules affecting depositary banks and their customers. Now, let’s turn to the relationship between payor banks and their customers. Article 4, Part 4 sets forth fairly extensive rules governing a payor bank’s relationship with its customers. In this lesson, we’ll highlight several of these rules. For a more detailed discussion of these rules and others, please refer to Quimbee’s comprehensive payment systems outline.
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