Exam 27: Bank Deposits, Collections, and Funds Transferspart Vi: Agency

On April 6, Ellen sends a check out to a magazine publisher and then discovers she has already paid for the subscription.She calls her bank and orders that the bank not make payment.That order will be good until:

Dan drew a $100 check on ABC Bank payable "to the order of Peg Buncy." Peg cashed the check at National Bank.National Bank is an agent of Peg until the drawee bank pays the check.

The Code imposes certain affirmative duties on bank customers and fixes time limits within which they must assert their rights.

Sylvia draws a check on ABC Bank payable "to the order of Ann Smith." Ann indorses it and deposits it in her account at First Bank.First Bank is a:

A payment order for a wholesale funds transfer must:

Barry presents to Wake Bank for deposit in his account a check for $100 made out to him by Richard.Wake Bank provisionally credits Barry's account on Monday.When is payment final?

Mary receives her monthly bank statement on December 30th.She looks at it quickly, then sets it aside.Three days later, she examines it again and discovers a forged check.What must she do to avoid responsibility for the check?

Theresa has just started working for Citizens Bank as a teller.A man comes into the bank with a $100 check that is 8 months old.She goes to the manager to ask whether she should pay it.If you were the manager, what would you advise her? Explain.

The duty of care exercised by a collecting bank in handling an item transferred to it for collection does not include:

If First Bank receives a check for collection on Friday at 4:30 p.m., it does not have to present the check to the payor bank by midnight Saturday.

A bank is permitted by statute to remove an original paper check from the check collection process and send a substitute check instead.

A payor bank is required to dishonor an uncertified check that is more than six months old.

Helen deposits a $50 check in her account at First Bank at 4:00 on Friday.The bank is closed on Saturday and Sunday, but opens again on Monday.The midnight deadline for First Bank would be:

Which of the following is true with regard to the federal Electronic Funds Transfer Act?

Point-of-sale systems permit customers to charge items to a charge account at a bank.

Banks like electronic funds transfers because they eliminate the float time that a drawer enjoys on a checking account and the paperwork involved in processing checks.

Adjudication of drawer's incompetence will not affect the bank's ability to act with respect to the drawer until the bank knows and has a reasonable opportunity to act on this knowledge.

Which warranties does a collecting bank give?

If a bank receives a check on Tuesday, it must take proper action, such as forwarding or presenting it, by midnight of Wednesday.

ABC Bank sent Joanne, a depositor, her January statement on January 31.Within what length of time after this date will Joanne have to notify ABC bank of any instruments containing alterations or unauthorized signatures included in her January statement?