Which duration is used in Section 34 to determine no dishonored drafts, missing reports, or defaults?

• A. Twelve months
• B. Eighteen months
• C. Twenty-four months
• D. Thirty-six months

Answer: (C)

Section 34 uses a twenty-four-month look-back to assess whether there have been any dishonored drafts, missing reports, or defaults. This two-year window focuses on recent financial behavior, balancing risk awareness with fairness—older issues beyond two years aren’t considered, while any incident within the last two years signals non-compliance. So if a draft was dishonored within the past 24 months, the requirement isn’t met; if nothing occurred in the last 24 months, the requirement is satisfied. Shorter windows might miss ongoing risk, while longer windows would overemphasize older problems that may no longer reflect current reliability.