Question: Tyler is concerned about TIP Tech s cash flow, but he needs to pay a supplier for materials. In hopes of avoiding an overdrawn checking
Tyler is concerned about TIP Techs cash flow, but he needs to pay a supplier for materials. In hopes of avoiding an overdrawn checking account, Tyler writes a check to the supplier dated two months in the future. The supplier receives the check immediately and hangs on to it for seven months before depositing it By the time the check is deposited, Tyler has forgotten about it When presented with the check for payment, must TIP Techs bank honor the check?
No because the check has been outstanding for more than six months.
Yes, because even stale checks can be honored by a bank as long as its done in good faith.
Yes, because the check is not stale.
No because Tyler did not notify the bank that he was postdating the check.
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