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Question 169

A Reserve Bank may present a noncash item for payment if instructed to do so by the sender and if the:

    Correct Answer: A, B, D

    A Reserve Bank may present a noncash item for payment if instructed to do so by the sender and if the item provides that it must be presented for acceptance, if the item is payable elsewhere than at the residence or business of the payor, or if the date of payment of the item depends on presentment for acceptance. These conditions ensure that the item can be processed correctly and meet any specified requirements for acceptance or payment.

Discussion
Cam22Option: D

The correct answer is D. A Reserve Bank may present a noncash item for payment if instructed to do so by the sender and if the date of payment of the item depends on presentment for acceptance. This stipulation means that if the timing for the payment of a noncash item is contingent upon it being presented for acceptance (for example, a draft that requires acceptance before it can be paid), then a Reserve Bank may handle its presentment in accordance with the sender's instructions. This process ensures that items which require acceptance to establish a payment date are properly presented, facilitating their eventual payment in accordance with the terms of the instrument.