Exam 17: Checks and Banking in the Digital Age

A drawer is not liable to the holder of a check if the check is not honored.

Dru signs a check "pay to the order of Eppie" drawn on Dru's account in First Federal Bank.Greta forges Eppie's indorsement.First Federal pays the check.Most likely

Fact Pattern 17-3 Mike loses his National Bank access card. He realizes his loss the next day but waits a week to call National. Meanwhile, Opal finds and uses Mike’s card to withdraw $3,000 from Mike’s account. -Refer to Fact Pattern 17-3.When Mike receives his National statement,he demands that the bank investigate the matter and recredit his account.The bank

If a customer's debit card is lost or stolen,the customer will not be liable for any unauthorized use of the card.

Kris presents an instrument that states "pay to the order of Liv" to Metro Bank for payment.This is a special type of draft drawn on a bank,ordering the bank to pay a fixed amount of money on demand.This is

Guaranty Bank receives a check drawn on the account of Get-Rich Industries,Inc. ,one of the bank's customers,at 3 p.m.Friday.Garry,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

Rikki signs a check "pay to the order of Scholar University" drawn on Rikki's account in State Bank to pay her tuition.Rikki is

A bank is obligated to pay an uncertified check presented less than six months from its date.

A stale check is one that has been outstanding for longer than one month.

Gaining unauthorized access to an electronic fund transfer system is a felony.

Jen signs a check "pay to the order of Kev" drawn on Jen's account in Little Bank to buy Kev's car.Jen asks Little Bank to indicate on the face of the check that it will accept it when Kev presents it for payment.If the bank agrees,this will be

Paris knowingly divulges to Media Exposure magazine information about Randy's e-money payments to City Bank.The payments were in transmission to City Bank when Paris,without the consent of Randy or City Bank,discovered and revealed them.This may be a violation of

Steve steals one of Tricia's checks and forges her signature.Tricia's bank,Unity Bank,pays the check.Tricia can recover from

Trudy forges Uma's signature on a check "payable to the order of Trudy" drawn on Uma's account in Verity Bank.Most likely,if the bank pays the check

A check is a special type of certificate of deposit.

Dina's debit card,issued by Eminent Bank,is stolen and used without Dina's permission.Dina tells Eminent Bank within thirty days.Dina may be required to pay no more than

E-Bank,an online financial institution,gives financial information about Paula and other customers to a federal agency without the customers' permission.E-Bank may be liable under

Brandy forges Caleb's signature on a check "payable to the order of Brandy" drawn on Caleb's account in Downtown Bank.Caleb's forged signature is

Fact Pattern 17-3 Mike loses his National Bank access card. He realizes his loss the next day but waits a week to call National. Meanwhile, Opal finds and uses Mike’s card to withdraw $3,000 from Mike’s account. -Refer to Fact Pattern 17-3.Mike is responsible for

Tiny authorizes United Bank to make transfers from his account to make payments on his debt to Vic's Auto Dealership,which sold Tiny the car that serves as collateral for the debt.After three payments,Vic's repossesses the car and refuses to return it.Tiny phones the bank to stop the payments and follows up with a confirming letter.The bank fails to stop the next two payments,and Vic's refuses to refund anything.Can Tiny get his money from the bank? Explain.