Under the check laws, the presumption of knowledge of insufficiency of funds does not lie when the check is presented after how many days from its date?

Under the check laws, the presumption of knowledge of insufficiency of funds does not lie when the check is presented after how many days from its date?

• A. 60 days
• B. 75 days
• C. 90 days
• D. 120 days

Answer: (C)

The key idea is that under the check laws, there is a built-in presumption that the drawer knew the funds were insufficient when a check is issued and later dishonored for insufficiency. But this presumption only applies if the check is presented for payment within a certain time frame. If the check is presented after 90 days from its date, that presumption cannot be used. After that 90-day window, the fact that the check bounced no longer automatically implies the drawer knew there were not enough funds at the time of issuance; the state would need other evidence to prove knowledge of insufficiency. So, the presumption does not lie after 90 days.

The key idea is that under the check laws, there is a built-in presumption that the drawer knew the funds were insufficient when a check is issued and later dishonored for insufficiency. But this presumption only applies if the check is presented for payment within a certain time frame. If the check is presented after 90 days from its date, that presumption cannot be used. After that 90-day window, the fact that the check bounced no longer automatically implies the drawer knew there were not enough funds at the time of issuance; the state would need other evidence to prove knowledge of insufficiency. So, the presumption does not lie after 90 days.