The "Preclusion Rule" Prevents or Precludes the Customer from Forging

question 46

True/False

The "preclusion rule" prevents or precludes the customer from forging a signature and then making a claim against the bank.

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Definitions:

Cash Collection

The process of receiving and processing payments from customers or clients for goods or services rendered.

Restrictive Covenant

Clauses in contracts that restrict or limit one party from engaging in certain activities, often to protect business interests or property value.

Debt Contract

A legal agreement outlining the terms under which money has been borrowed and must be repaid, including the interest rate and maturity date.

Debtholder

An individual or institution that lends money to a company or government, thus owning its debt securities such as bonds.