Asked by marissa ciavatta on Jul 10, 2024
Verified
Ashton Bank knows that its customer,Juan,has died.One day after Juan's death,Ashton Bank was presented a check for clearing of $3,000.The check was written by Juan a week prior to his death to Bailey Enterprises.Discuss the legal rights of Bailey Enterprises.
Legal Rights
Refers to the entitlements granted by legal systems or societal norms to individuals or entities, encompassing freedoms, privileges, and protections under law.
Clearing
The process of reconciling purchases and sales of various options, futures, or securities, as well as the direct transfer of funds from one financial institution to another.
- Clarify the role of banks in the process of approving or declining checks, including the handling of postdated checks and checks from the accounts of individuals who have died.
Verified Answer
TJ
Tajrin JahanJul 13, 2024
Final Answer :
A bank may pay or certify checks for ten days after the death of the drawer.This rule permits holders of checks that are drawn shortly before the drawer's death to cash them without the necessity of filing a claim with the court handling the deceased's estate.
Learning Objectives
- Clarify the role of banks in the process of approving or declining checks, including the handling of postdated checks and checks from the accounts of individuals who have died.