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Question 162

The Reserve Bank may recover from the sender the attorneys' fees if an action is brought against a Reserve Bank on the basis of:

Failure of sender to have authority to make the required warranties and agreements

Any action by the Reserve Bank within the scope of its authority in handling the item

Any warranty made by the Reserve Bank

All of the above

Correct Answer: A

The Reserve Bank may recover from the sender the attorneys' fees if an action is brought against a Reserve Bank on the basis of the sender's failure to have authority to make the required warranties and agreements. This ensures that the sender is responsible for their own actions and any legal issues arising from their lack of authority.

Discussion

Cam22Option: A

If an action is brought against a Reserve Bank due to the failure of the sender to have the authority to make the required warranties and agreements, the Reserve Bank may recover attorneys' fees from the sender. This underscores the importance of ensuring that the sender has the necessary authority in financial transactions to avoid legal complications