An Assignment for the Benefit of Creditors Is an Involuntary

question 30

True/False

An assignment for the benefit of creditors is an involuntary proceeding instituted generally by a bankruptcy court.

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Definitions:

Drawer

The person or entity that writes and signs a check or draft, instructing the drawee (usually a bank) to pay the specified sum to the payee.

Payee

The individual or entity entitled to receive payment in a transaction.

Electronic Banking

The use of computer networks and digital technologies to conduct financial transactions and access banking services.

On-us Item

A check or draft that is drawn on the same bank or one of its branches where it is being presented for payment.