Exam 34: Checks and Electronic Transfers

A deceased person's heirs have no power to order a bank to stop payment on checks written by the deceased prior to his death.

A bank will be liable if it charges a customer for a check that is postdated and the bank was given prior notice of the postdate.

Boston Bank receives one of their payable checks made to the order of the Same Sex Alliance organization of Massachusetts for $1000.The check comes from a valid account and there are funds in that account to cover the check.The CEO of Boston Bank does not agree with the mission of the Same Sex Alliance so Boston Bank refuses to honor the check.Boston Bank is within its power as a bank to do this.

While receiving a properly drawn and payable check on a person's account,which of the following circumstances make it a necessity for the bank to honor the check?

The time period within which a customer must report unauthorized customer signatures to the bank to get his account recredited is:

_____ is a process which begins with the buyer giving the seller a check,and the seller using the information on that check to name itself as the payee and forwarding it for collection through an automated clearing house.

A bank may,but need not,pay any checks that are more than six months old.

A stop-payment order is authorized by the:

Mike buys a new $25,000 turbocharged Dodge Vampire for cash.The dealer requires a certified check for that amount,so Mike gets his bank to certify his check for $25,000.One day later,the bank goes bankrupt.Rather than trying to recover in bankruptcy,the dealer pursues Mike.One of the dealer's theories is that Mike is secondarily liable on the check,and that the bank's default makes Mike liable on the instrument.Is the bank right?

Which of the following statements is true concerning multiple forgeries and alterations?

Jim gave a postdated check dated December 30 to one of his creditors on December 22.However,the check was presented to Jim's bank on December 24,and the bank honored it.As a result,there was not enough money in his account to cover for another check he had written for December 27,and hence,the check bounced.The bank charged Jim a $20 fee for the bounced check.What is the bank's liability regarding this bounced check?

Under the Expedited Funds Availability Act,customers can draw upon checks deposited in their checking account within:

In case of honoring checks,a bank:

Which of the following is true for a stop-payment order to be effective?

On June 1,Dave Drawer writes a check to Pete Payee.The check is postdated to July 1.Nonetheless,Pete presents the check for payment at Dave's bank on June 15,and receives payment on that date.After Dave learns of this,he screams bloody murder,arguing that the check was not properly payable and that the bank should recredit his account.Is Dave right? Assume that the check is otherwise properly payable,and that Dave never told the bank about it before Pete presented it.

A drawer's written stop-payment order is valid for:

Prof.Bob DeSlob writes a check on his Big Bank checking account for $1 payable to "Department of Business Law Coffee Club" to pay for his weekly membership and gives it to his colleague Carol.Bob does not place a decimal point after the "1" nor does he complete the line ending in "dollars." Carol,knowing that Bob can well afford it,prints in block letters the words "One Hundred" on the line ending in "dollars." Carol then gives the check to Dot,the Department secretary who is in charge of the Coffee Club.Dot presents the check to Big Bank for payment,and Big Bank charges $100 from Bob's account.Which of the following statements is most accurate?

Sal brings a stale check to his bank on June 1,2003.The check is dated September 1,2002.The bank:

Hailey wrote a check for Marsha,her landlady,on July 7 and dated it for August 1.Hailey notified her bank to not honor the check before August 1.However,the bank honored the check when Marsha presented it on July 29.Due to insufficient funds,the bank turned down the check and charged $50 to Hailey's account.Marsha terminated Hailey's rental contract for writing her a bad check.Which of the following is true of this situation?

Certified checks must be made available by: