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Which of the Following Is True of a Stop-Payment Order

Question 57

Multiple Choice

Which of the following is true of a stop-payment order issue to a bank?


A) It is valid for 10 days if given orally.
B) It is valid for 1 year if given in writing.
C) A bank that pays a check in violation of a valid stop-payment order is liable to the drawer only if the drawer is damaged by this payment.
D) A holder or indorser may stop payment on a check.

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