An Extension Clause Allows a Payee or Other Holder of a Time

question 13

True/False

An extension clause allows a payee or other holder of a time instrument to demand payment of the entire amount due, with interest, if a certain event occurs.

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Definitions:

Will

A document executed with specific legal formalities that contains a person’s instructions about the disposition of his property at his death.

Transferred

In the context of property or legal rights, refers to the act of moving ownership, authority, or responsibility from one party to another.

Validly Executed

A legal term indicating that a document has been signed and carried out according to the required legal formalities.

Warehouse Receipt

A document that provides proof of ownership of commodities (e.g., goods or merchandise) stored in a warehouse.