Exam 30: Checks and Funds Transfers

Consumers have the responsibility to examine periodic statements provided by their financial institutions.If a loss would not have occurred but for the failure of a consumer to report within __________ of the transmittal of the statement any unauthorized transfer, the loss is borne by the consumer.

A forged indorsement must be reported within:

A bank always is liable to the depositor on a counterfeit check that the bank has paid.

Certification of a check at the request of a holder:

Customers are precluded from asserting unauthorized signatures or alterations if they do not report them within __________ from the time the bank statement is received.

An oral stop payment order is binding on the bank for __________ days unless confirmed in writing within that time.

All of the following are correct concerning stop payment orders, except: ______.

When a bank certifies a check, the amount involved in the certification will be debited in the depositor's account until payment of the certified check.

Harvey issued a check to AgribizCo and, after mailing the check, suffered a heart attack and died.In the regular course of business, the bank paid the check when presented by AgribizCo for payment, despite the fact that the bank had received notice fourteen (14) days earlier of Harvey's death.In terms of the bank's payment of the check​

A drawer may be held criminally liable if a check or draft is dishonored.

Banks are liable for losses on counterfeit checks in all the following scenarios except: 

Although a drawer has stopped payment on a check, the drawer still may be held liable on the check.

A bank must be given a reasonable amount of time to put a stop payment order into effect.

When a drawee bank pays on a check that lacks an essential endorsement:

Ordinarily, the drawee bank is liable to the drawer when it pays a check on which the drawer's signature has been forged.

An overdraft is treated as a loan from the bank to the customer, and the customer must repay that amount to the bank.

A debit transaction occurs when a person making a payment requests such payment be made to the beneficiary's bank.

All of the following statements is incorrect concerning stale checks except: ______.

The "preclusion rule" prevents or precludes the customer from forging a signature and then making a claim against the bank.

Most states provide that if a dishonored check is not made good within a stated period of time, it will be presumed that the check was originally issued with the intent to defraud.