The Deferred Posting Rule Allows Banks to Fix an Afternoon

question 73

True/False

The deferred posting rule allows banks to fix an afternoon hour of 2:00 P.M. or later as a cutoff hour for the purpose of processing checks and deposits.

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Definitions:

Apparent Authority

A situation where a person appears to have been given the power to act on behalf of another, leading third parties to reasonably believe in that authority.

Actual Authority

Legal power that an agent has been deliberately given by a principal to act on their behalf in business dealings.

Limited Liability Partnerships (LLPs)

A form of partnership in which some or all partners have limited liabilities, protecting personal assets from business debts and liabilities.

Incorporation

The process of legally defining a company as a separate entity from its owners, providing limited liability and other benefits.