Adjudication of drawer's incompetence will not affect the bank's ability to act with respect to the drawer until the bank knows and has a reasonable opportunity to act on this knowledge.

Question

Quizplus · Accepted Answer

The bank is not liable for actions taken before it has knowledge of the drawer's incompetence and a reasonable opportunity to act on that knowledge.

Adjudication of Drawer's Incompetence Will Not Affect the Bank's Ability