Which of the following is NOT listed as a reason for refusing a check?

• A. Post/ stale dated
• B. Proper endorsements
• C. Stop payment
• D. Non-customer with a transit check

Answer: (B)

Proper endorsements indicate the check has been signed and authorized for transfer, making it a valid negotiable instrument. When a check is properly endorsed, there’s no reason to refuse it on the basis of endorsement quality; endorsements actually help prove who is entitled to the funds and allow the transfer to proceed.

On the other hand, checks can be refused for other reasons: if a check is postdated or stale-dated, the bank may not pay it because the date indicates it isn’t currently payable; a stop payment order from the account holder instructs the bank not to honor the check; and a non-customer presenting a transit check can raise risk or policy concerns, leading to refusal.