If a Depositor in First Bank Takes a Check Written

question 41

True/False

If a depositor in First Bank takes a check written on Valley Bank to First Bank to deposit, it will not normally be credited to his account until collected from the payor bank.

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Definitions:

Merger

The combination of two or more companies into one, where one corporation is completely absorbed by another corporation.

Consolidation

The joining of two corporations.

Securities

Financial instruments that signify ownership in a public company (stocks), a creditor relationship with a governmental body or a corporation (bonds), or rights to ownership as represented by an option.

Fractional Interest

Ownership in a part or fraction of an asset, where the ownership is shared among multiple parties.