A _____ Issued by a Bank Is a Promise by That

question 121

Multiple Choice

A _____ issued by a bank is a promise by that bank to make a loan if certain conditions are met.

• A) compensating balance
• B) cleanup loan
• C) letter of credit
• D) line credit
• E) revolver

---

Definitions:

UCC

The Uniform Commercial Code, a comprehensive set of laws governing all commercial transactions in the United States, intended to harmonize the law among the states.

Warranty Rights

Legal entitlements or protections afforded to consumers, guaranteeing that a product will meet certain standards of performance and quality.

Privity

The direct relationship between parties to a contract, which determines who can sue whom to enforce rights or obligations under the contract.

Title Warranties

Legal guarantees provided by a seller that they have the right to transfer ownership and that the asset is free from liens or encumbrances.