Exam 28: Banking in the Digital Age

A bank may contractually shift to the customer the risk of forged checks created electronically or by the use of nonmanual signatures.

Fact Pattern 28-2B (Questions B16-B18 apply) Belle draws a check on her account in Capital Credit Bank in New York, payable to Distribution Marketing, Inc., in San Francisco. Distribution Marketing deposits the check in its ac?count at Equity Bank. Equity Bank deposits the check in the Federal Reserve Bank of San Francisco, which transfers it to the Federal Reserve Bank of New York. That Federal Reserve Bank sends the check to Capital Credit. -Refer to Fact Pattern 28-2B. Capital Credit, Belle's bank, is