Exam 24: Banking in the Digital Age

Any failure of a bank to honor a check because it would create an over-draft is a wrongful dishonor.

The rights and duties of a bank and its customer are contractual.

Britney loses her Campus Bank access card. She realizes her loss the next day but waits a week to call the bank. Meanwhile,Drake finds and uses Britney's card to withdraw $3,000 from Britney'saccount. -Refer to Fact Pattern 24-1.Britney is responsible for

Franco buys a sound system from Georg at Georg's garage sale. Franco writes Georg a check for $250 to pay for the system. Georg is

When a customer deposits cash into a checking account,he or she becomes a debtor for the amount deposited.

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

The Federal Reserve System acts as a clearinghouse where banks exchange checks.

Only a customer or a person authorized to draw on an account can order a bank not to pay a check when it is presented for payment.

The incompetence of a customer revokes a bank's authority to pay an item.

On Friday morning,Geoff deposits into his account at Heartland Bank a $500 check from Imelda,who also has an account at Heartland. On that same day,this check is considered

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank. Caleb's forged signature is

Britney loses her Campus Bank access card. She realizes her loss the next day but waits a week to call the bank. Meanwhile,Drake finds and uses Britney's card to withdraw $3,000 from Britney'saccount. -Refer to Fact Pattern 24-1. When Britney receives her Campus Bank statement,she demands that the bank investigate the matter and recredit his account. The bank

Daisy signs a check "pay to the order of Ewan" drawn on Daisy's account in Finance Bank. Graham forges Ewan's indorsement. FinanceBank pays the check. Most likely

Ridgetop Bank creates a paper reproduction of customer Sophie's check with the statement "This is a legal copy of your check. You can use it in the same way you would use the original check." This is

Homer can write checks on his account at InterCity Bank. Jemma steals the checks,forges Homer's signature,and cashes the checks at InterCity. The bank is excused from any liability if,after receipt of the first forged check,Homer fails to report the forgeries within

A bank's duty to honor its customer's check is subject to the stipulation that the account has sufficient funds to pay the check.

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

A customer can stop payment on a check that has been certified or accepted by a bank.

Gillian writes a check to Harris as payment for a video game player but soon discovers the player is broken. She goes to the drawee bank and orally authorizes Ilene,a bank officer,to stop payment on the check. This order is valid for

Tomas writes a check for $1,000 drawn on Unified Bank and presents it to Viola. Viola presents the check for payment to Unified Bank,which dis-honors it. The party most likely liable to Viola is