payor bank

Definition of "payor bank"
  1. A financial institution which is responsible for paying a check or draft presented to it
How to use "payor bank" in a sentence
  1. The payor bank is held liable if a fraudulent check is cashed and the funds are not recoverable.
  2. In a typical transaction, the payor bank verifies the endorsement and validity of the check before releasing funds.
  3. The individual presented the check at the payor bank and received cash after a quick validation process.

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