Exam 18: Checks and Banking in the Digital Age

A bank may not pay any checks on a customer's account after the date of the customer's death.

Jackie inserts a debit card issued by her bank into a machine and keys in her personal identification number.She is then able to withdraw $500 in cash.Jackie is using

Jon writes a check to LocoMotion,Inc.,as payment for a golf cart but soon discov-ers the cart is broken.He goes to Fairway Bank,the drawee,and orally author-izes Lolly,a bank officer,to stop payment on the check.This order is valid for

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

Fact Pattern 18-1 Echo takes her car to Fix-It,Inc.,which repairs the car and bills Echo for $500.Echo writes out a check drawn on Capital Bank,but later,believing that Fix-It did not repair the car properly,issues a stop-payment order. -Refer to Fact Pattern 18-1.Capital Bank

Little Local Bank wrongfully fails to honor a check signed by its customer Andrea.Little Local Bank is

A forged indorsement does not transfer title.

A certified check is a check that has been signed by a notary public.

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

Luc writes a check for $1,000 drawn on Ridgetop Bank and presents it to Bianca.Bianca presents the check for payment to Ridgetop Bank,which dis-hon-ors it for insufficient funds.The party most likely liable to Bianca is

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

Shakira issues a check drawn on Thrifty Bank to Ranch & Farm Supply to pay for a rototiller.Later,Shakira discovers a defect in the device and orders Thrifty to stop payment on the check.Shakira does not renew the order,and the bank clears the check eight months later.The bank