A financial institution that receives a promissory note has the right to:

Question

Quizplus · Accepted Answer

When a financial institution receives a promissory note, they have the right to sell the note to another party. This is a common practice and allows the institution to transfer the risk of default to another party. However, they do not have the right to demand redemption from the U.S. Treasury, change the interest terms of the note, or demand repayment before the originally agreed upon time.

A Financial Institution That Receives a Promissory Note Has the Right