Exam 24: Banking in the Digital Age

A bank is notobligated to pay an uncertified check presented less than six months from its date.

When processing a check,Savings & Trust Bank encodes information,such as the amount of the check,on the item. Savings & Trustthereby warrants to any subsequent bank or payor that

Ana writes a check to Becky on Ana's account at Community Bank. The bank dishonors the check even though Ana has sufficient funds in her account. The bank is liable to

Smart cards carry and process security programming.

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

TriState Bank agrees to accept a check by setting aside sufficient funds to cover the amount. This check is considered

A drawer is liable to the holder of a check in a civil suit if the check is dishonored for insufficient funds.

Gary writes a check drawn on Hilltop Bank for $400 "payable to Ivan" on May 1. Gary dies on May 3. Ivan presents the check to the bank on May 5. Unaware of Gary's death,the bank

A customer has two days to discover and notify the bank of any error on the monthly statement involving an electronic transfer of funds.

A customer can escape liability for failing to notify the bank of forged or altered checks when the customer can prove that the bank was negligent.

A substitute check is a paper reproduction of the front and back of an original check that contains all the same information required on checks for automated processing.

O'Shea issues a check drawn on Prime Bank to Quality Equipment Supply to pay for a backhoe. Later,O'Shea discovers a defect in the backhoe and orders the bank to stop payment on the check. O'Shea does not renew the order,and the bank clears the check eight months later. The bank