Which of the Following Is True of a Collecting Bank

question 53

Multiple Choice

Which of the following is true of a collecting bank?

• A) The relationship between a collecting bank and the owner of an item, once settled, becomes a debtor-creditor relationship.
• B) A collecting bank is an agent of the owner of an item until settlement becomes final.
• C) A collecting bank may be a sub-agent of the owner until settlement becomes final.
• D) All of these are true.
• E) None of these are true.

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Definitions:

Federal Law

Legislation enacted by the federal government of a country, applicable nationwide and superseding local state laws in matters of national importance.

Trade Fixtures

Personal property used in a business and attached to leased premises, which can be removed by the lessee at the end of the lease term.

Firm Offer

An offer made in writing and giving assurances that it will be irrevocable for not longer than three months despite a lack of consideration for the irrevocability.

Statute of Frauds

The Statute of Frauds is a legal principle that requires certain types of contracts to be in writing and signed by the party to be charged, in order to be enforceable.