Exam 24: Banking in the Digital Age

Rhea writes a check for $100 drawn on Savers Credit Union and presents it to Timpani Jewelers for payment. If the check is not backed by sufficient funds, Rhea may be prosecuted for

Because the speed of check-processing time is increasing, to avoid overdrafts, an account-holder needs to verify that funds are available to cover a check when it is written.

Even if a customer's negligence substantially contributes to a forgery of the drawer's signature on a check, the bank is obliged to re-credit the customer's account for the amount of the check.

Teri writes a check for $1,000 drawn on United Bank payable to Vida. Vida presents the check for payment to United Bank, which dishonors it. The party most likely liable to Vida is

Faye forges Greta's signature on a check "payable to the order of Faye" drawn on Greta's account in Home Bank. Most likely, if the bank pays the check

Dan signs a check "pay to the order of Eton" drawn on Dan's account in Fidelity Bank and dates the check "May 1." Eton presents the check to the bank for payment on December 15. This is

A customer can refuse to accept a substitute check created from the digital image of an original check as proof of payment.

If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the amount.

A check may fall under Uniform Commercial Code Article 3 as a negotiable instrument and be subject to UCC Article 4 in the course of collection.

Electronic banking makes it easier to issue a stop-payment order.

Tomas signs a check "pay to the order of University Bookstore" drawn on his account in Verity Bank to pay for his textbooks. The bookstore deposits the check in its account in West Bank. Like most checks, this check is

Elmore pays Fidelity Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service. This is