The incompetence of a customer revokes a bank's authority to pay an item.

Question

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The incompetence of a customer does not necessarily revoke a bank's authority to pay an item. The bank may still have the authority to pay the item if it has agreed to do so or if it is legally required to do so. However, the bank may choose to exercise discretion and decline to pay the item if it deems the customer to be incompetent or if it is unable to verify the authenticity of the transaction.

The Incompetence of a Customer Revokes a Bank's Authority to Pay