Exam 20: Banking in the Digital Age

A certified check is a check that has been accepted by the bank on which it is drawn.

A bank is not obligated to pay an uncertified check presented less than six months from its date.

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

Fact Pattern 20-1 ​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's account. -Refer to Fact Pattern 20-1. When Britney receives her Campus Bank statement, she demands that the bank investigate the matter and recredit his account. The bank​

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​

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

Any local check deposited must be available for withdrawal by check or as cash within one business day from the date of deposit.

An agency relationship arises between the customer and the bank when the customer writes a check on his or her account.

Clyde issues a check payable to Discount Mart. Ethel, Discount's cashier, forges the store's indorsement and deposits the check in her bank account. Clyde's bank, Farmers State Bank, pays the check. Clyde can recover from

Today, most checks are processed manually.

Commercial banking practices consider a check that has been outstanding for three months to be a stale check.

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

Ian buys a cell phone in Jiffy Mart, using the means that accounts for more retail payments than any other. This means of payment is

Falls River Bank receives a check drawn on the account of Get-Rich Industries, Inc., one of the bank's customers, at 3 p.m. Friday. Hildy, the presenter of the check, is not one of the bank's customers. The bank uses deferred posting with a 2 p.m. cutoff hour. If it decides to dishonor the check, it must do so by midnight​

Ervin signs a check "pay to the order of Felicia" drawn on Ervin's account in Garden Fields Bank. Ervin later orders the bank not to pay the check, but the bank pays it over Ervin's order. Subsequent checks written on Ervin's account "bounce." Most likely liable for the costs to Ervin is

Fact Pattern 20-1 ​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's account. -Refer to Fact Pattern 20-1. Britney is responsible for

A customer must examine a bank statement and report any discovered forged signature to recover from the bank for the forgery.

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

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.

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