Exam 19: Checks and Banking in the Digital Age

Fact Pattern 19-3 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 19-3.Mike is responsible for

A bank that has certified a check is under no obligation to accept it.

A forged signature is effective as the signature of a drawer to the extent that is resembles the drawer's actual signature.

Ian buys a cell phone in Jiffy Mart,using the means that accounts for more retail payments than any other.This means of payment is

When a check "bounces," its holder can resubmit the check later,hoping that sufficient funds will be available.

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

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

The first bank to receive a check for payment is the depositary bank.

Brendan signs a check "pay to the order of City College Bookstore" drawn on his account in Delta Bank to pay for his current semester's textbooks.The bookstore deposits the check in its account in Eagle Bank.Like most checks,this check is

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

A check carries with it an implied promise to reimburse the bank for paying the check.

Financial institutions that exchange digital images of checks do not have to exchange the original paper checks.

A written stop payment order is valid for fourteen days.

A bank that pays a customer's check with a forged drawer's signature can generally pass the loss onto the customer.

A customer has sixty days from the date of receipt of a statement of an electronic transfer to notify the financial institution of any errors.

Clyde issues a check payable to Discount Mart.Elle,Discount's cashier,forges the store's indorsement and deposits the check in her bank account.Clyde's bank,First State Bank,pays the check.Clyde can recover from

Fact Pattern 19-1 (Questions 15 and 16 apply) 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 19-1.Capital Bank pays the check.Capital

On Monday,Eve deposits in her account at Fiscal Bank a local check for $500.After 5:00 p.m.on Friday,from these funds,Eve can withdraw no more than

Stored-value cards are a form of digital cash.

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