Briefly explain certified checks
What will be an ideal response?
When a bank certifies a check, it agrees in advance 1. to accept the check when it is presented for payment and 2. to pay the check out of funds set aside from the customer's account and either placed in a special certified check account or held in the customer's account. Certified checks do not become stale. Thus, they are payable at any time from the date they are issued.
A check is a certified check when the bank writes or stamps the word "certified" across the face of an ordinary check. The certification should also contain the date, the amount being certified, and the name and title of the person at the bank who certifies the check. Note that a bank is not obligated to certify a check. A bank's refusal to do so is not a dishonor of a check. The drawer cannot stop payment on a certified check.
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