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Rules

FINRA Rule 4514

Prohibits the drawing of a negotiable instrument on a customer account without the customer's express written authorization.

Rule Overview

Jurisdiction: United States

Regulator: FINRA

Topic: Recordkeeping

Overview
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A written authorization may include the customer’s signature on the negotiable instrument.

An authorization that is separate from the negotiable instrument must be preserved for a period of three years following the date of its expiry.

Negotiable instruments include:

  • check
  • draft
  • other negotiable paper
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