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

Question

Quizplus · Accepted Answer

The incompetence of a customer does not necessarily revoke a bank's authority to pay an item. The bank may still choose to pay the item if it has the necessary funds and the transaction meets its criteria for payment. However, the bank may deny payment if it believes there is a risk of fraud or if the customer's incompetence affects their ability to authorize the transaction.

The Incompetence of a Customer Immediately Revokes a Bank's Authority