Explain preauthorized debits and ...

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Explain preauthorized debits and credits.

Question 2

Barry and Eldridge owned Blueacre as tenants in common. Eldridge died. Blueacre is owned:
 A) solely by Barry because of the survivorship feature.
 B) jointly by Barry and the state because of escheat.
 C) by Barry and Eldridge's heirs.
 D) solely by Eldridge's heirs.

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Answer to Question 1

Checking account customers may authorize that recurring bills, such as home mortgage payments, insurance premiums, or utility bills, be automatically deducted from their checking accounts each month. This is called a preauthorized debit. It allows a person to avoid the inconvenience and cost of writing out and mailing checks for these bills.
A preauthorized credit allows the amount of regular payments to be automatically deposited in the payee's account. This type of EFT is frequently used for depositing salaries and government benefits, such as Social Security payments. It benefits the payor, who does not have to issue and mail the checks. The payee does not have to bother depositing a check and normally has access to the funds sooner.

Answer to Question 2

C