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Which of the Following Defeats a Bank's Liability for Failing

Question 47

Multiple Choice

Which of the following defeats a bank's liability for failing to observe a stop-payment order?


A) That the order was oral rather than written.
B) That the bank was not given 14 days to obey the order.
C) That the bank paid a person against whom the customer did not have a defense.
D) That the bank has the customer sign a disclaimer holding the bank harmless for its failure to exercise ordinary care and good faith regarding its handling of stop-payment orders.

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