Asked by Kaleb Shukeat on May 01, 2024
Verified
Which of the following is most true about stop-payment orders?
A) Their validity is only for 14 days.
B) Their validity is only for six months.
C) They must give the bank 14 days to act on the order.
D) They can be oral or written.
Stop-Payment Orders
A request made by an account holder to a bank to not pay out on a check or payment that has been issued on their account.
Validity
The state of being legally sound, effective, or binding; the quality of being logically true or sound.
Oral
Pertaining to words spoken, rather than written, used for communication.
- Learn about the stipulations and deadlines linked to stop-payment requests.
Verified Answer
ZK
Zybrea KnightMay 04, 2024
Final Answer :
D
Explanation :
The customer may give a stop-payment order orally to the bank,but it is valid for only 14 days unless the customer confirms it in writing during that time.A written stop-payment order is valid for six months and the customer can extend it for an additional six months by giving the bank instructions in writing to continue the order.
Learning Objectives
- Learn about the stipulations and deadlines linked to stop-payment requests.