A compensating balance not only forces the borrower to be a good customer of the bank but may also raise the interest cost to the borrower

Holland, Inc. purchased manufacturing equipment for $12,600. It has an estimated useful life of seven years and no residual value. The company should record depreciation expense of $100 per month. (Assume that the company uses the straight-line method

) Indicate whether the statement is true or false

Which of the following is true in the event an assignee does not provide a notice of assignment to the obligor?

A) The assignee's only course of action is to sue the obligee for damages. B) The assignee cannot sue the assignor for damages. C) The obligor's only recourse is to sue the assignee for damages. D) The assignee cannot sue the obligor to recover payment.