Practice question
At issue the drawer knows funds are insufficient. A check would have been dishonored for that reason, but the drawer also orders stop payment without valid reason. All first-paragraph BP22 elements and required notice facts are proved. The drawer argues the stop order necessarily prevents the statute from applying. What does its text include?
- Every stop order automatically defeats liability
- The stated would-have-been-dishonored situation involving unjustified stop payment
- A stop order always proves sufficient funds
- Only a bank closure can matter
- No dishonor-related alternative exists
Legal references
- BP22 Sections1 and3, maintaining funds and drawee duties: https://lawphil.net/statutes/bataspam/bp1979/bp_22_1979.html
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