Collecting Banks Give to a Transferee the Same Basic Warranties

question 49

True/False

Collecting banks give to a transferee the same basic warranties as those given by other parties who transfer commercial paper, except they also may give encoding warranties.

---

Definitions:

Merchant

An individual or company engaged in the buying and selling of goods for profit.

Buyer

An individual or entity that purchases goods or services from another party.

Ownership Rights

Legal rights that confer the ability to use, control, and dispose of property or assets.

Passing of Title

The formal process of transferring ownership rights of a property from one entity to another.