Faye Has Been Declared Incompetent by a Court

question 33

Multiple Choice

Faye has been declared incompetent by a court.Her bank:

• A) may continue to pay her checks until it has received notice that a court has determined her to be incompetent.
• B) must itself make a determination of her competence.
• C) is not liable if it pays her checks since it has contractual obligations to pay her checks as long as she has an account and there are sufficient funds in the account to cover the checks.
• D) is liable only for reasonable check amounts written by Faye.

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