The Legal Incompetence of a Customer Immediately Revokes a Bank's

question 39

True/False

The legal incompetence of a customer immediately revokes a bank's authority to pay an item.

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Definitions:

Registration

The act of recording information or names officially, often for legal, official, or security purposes.

Snowmobile

A motorized vehicle designed for travel over snow, usually on runners with a treaded rear allowing for propulsion across snow-covered terrains.

Floating Charge

A debt security issued by a corporation in which assets of the corporation, such as stock-in-trade, are pledged as security. Until such time as default occurs, the corporation is free to dispose of the assets.

Creditor

An entity or person to whom money is owed by a debtor.