William draws a check on city bank payable to the order of tara. tara indorses it to rebecca. rebecca deposits it to her account in town bank. town bank properly presents it to city bank, the drawee. city bank dishonors it because william did not have enough funds on deposit to cover the check. in this case:
a. william is discharged from liability only if he fails to receive notice of dishonor. b. city bank has until midnight of the following day to notify town bank, rebecca, or tara of the dishonor. c. if town bank received notice of dishonor on monday, it would have until midnight on wednesday to notify tara or rebecca. d. rebecca has until midnight of the following day after receipt of notice of dishonor to notify tara.

B

Explanation:

City Bank has until midnight of the following day to notify Town Bank, Rebecca, or Tara of the dishonor.

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