Asked by Devin Usher on Jul 05, 2024
Verified
When a customer makes a deposit into a checking account, the customer becomes a debtor, and the bank a creditor, for the amount deposited.
Debtor
Under Article 9 of the Uniform Commercial Code, any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in the collateral.
Creditor
An individual or institution that lends money or extends credit to another, with the expectation of being repaid.
- Understand the debtor-creditor relationship between banks and customers upon deposit.
Verified Answer
NS
Nurintan ShahiraJul 09, 2024
Final Answer :
False
Explanation :
When a customer makes a deposit into a checking account, the bank owes the deposited amount to the customer, making the customer the creditor and the bank the debtor.
Learning Objectives
- Understand the debtor-creditor relationship between banks and customers upon deposit.