Asked by Sarah Ennis on Oct 01, 2024

Which of the following is true in case of death or incompetence of a customer?

A) A bank cannot pay checks of a deceased customer until it has notice of the customer's death.
B) If a bank knows of a customer's death,it can pay checks written by the customer prior to his/her death,for a period of 30 days.
C) The deceased person's heirs or other persons claiming an interest in the account can order the bank to stop payment.
D) A bank can declare checks signed by the customer while he/she was alive,as null and void.

Customer's Death

refers to the event of a customer dying, potentially affecting their ongoing contracts and the legal obligations or rights of the entities they were engaged with.

Deceased Customer

A deceased customer refers to an account holder or client of a bank or financial institution who has passed away, initiating specific legal and operational procedures regarding the handling of the individual's assets and accounts.

Check Payment

A method of payment wherein the payer writes a check to the payee, who then deposits or cashes the check to receive the amount specified.

  • Comprehend the obligations and duties of banks when dealing with incidents of returned checks, checks dated in the future, and requests to halt payments.
  • Comprehend the procedure and lawful consequences of check collection in the banking sector.