Exam 30: Checks and Funds Transfers

If a bank pays a check whose face has been altered to increase the amount above that which the drawer intended to pay,the bank:

A forged indorsement must be reported within:

A bank is not required to pay a check presented more than three months after its date.

Customers are precluded from asserting unauthorized signatures or alterations if they do not report them within __________ from the time the bank statement is received.

Which of the following statements describes a check?

Certification of a check at the request of a holder:

A bank will not be liable for payment of a check on which the drawer's signature has been forged if:

An overdraft is treated as a loan from the bank to the customer,and the customer must repay that amount to the bank.

A notice of dishonor may be oral,written or electronic.

A written stop payment order is binding on the bank for 90 days.

In theory,a valid check can be written on a cocktail napkin.

Banks are liable for losses on counterfeit checks in all the following scenarios except:

A check is a particular kind of draft.

Ordinarily,the drawee bank is liable to the drawer when it pays a check on which the drawer's signature has been forged.

Checks that involve amounts of more than $5,000 generally trigger the bank reporting requirements under the USA Patriot Act.

A tender occurs when the holder of a check or other consumer transaction authorization demands payment.

Postdating a check changes the check from a demand draft to a time draft.

The Railway Express Agency delivered a shipment of goods to Lorraine.Payment for the goods was made with a certified check,payable to the order of the Railway Express Agency.The check was drawn by Lorraine on the First National Bank of Detroit.Later,the bank refused to pay the check when it was presented by Railway Express,the holder,because the bank had become insolvent and stopped doing business.The Railway Express Agency sued Lorraine.Lorraine claimed that she was not liable on the check because it was certified.Is she correct?

An "encryption" warranty is a warranty made by any party who encodes electronic information on an instrument.

Although a drawer has stopped payment on a check,the drawer still may be held liable on the check.