Exam 27: Checks and Banking in the Digital Age

On Monday morning,Bob deposits into his account at County Bank a $500 check from Dyna,who also has an account at County Bank.On that same day,this check is considered

First Community Bank agrees to accept a check by setting aside suffi?cient funds to cover the amount.This check is considered

The death of a customer immediately revokes a bank's authority to pay an item.

Only a customer or a person authorized to draw on an account can order a bank not to pay a check when it is presented for payment.

A creditor-debtor relationship can exist between a bank and its customer.

Kareem writes a check for $1,000 drawn on Liberty Bank and presents it to Maris.Maris presents the check for payment to Liberty Bank,which dis?hon?ors it.The party most likely liable to Maris is

Roald writes a check for $700 to Savannah.Savannah indorses the check in blank and transfers it to Twitchell,who alters the check to read $7,000 and presents it to Union Bank,the drawee,for payment.The bank cashes it.Roald discovers the alter?ation and files a suit against the bank.Roald can recover

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

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

Any failure of a bank to honor a check because it would create an over?draft is a wrongful dishonor.

A bank that encodes information on an item after the item has been is?sued warrants to any subsequent bank that the encoded information is correct.

Elmer can write checks on his account at Finance City Bank.Gina steals the checks,forges Elmer's signature,and cashes the checks at Finance City.The bank is excused from any liability if,after receipt of the first forged check,Elmer fails to report the forgeries within

eBank,an online financial institution,gives financial information about Frieda and other customers to a federal agency.eBank may be in viola?tion of federal law

Darwin signs a check "pay to the order of Eva Marie" drawn on Darwin's account in First Funds Bank and dates the check "April 1." Eva Marie presents the check to the bank for payment on November 12.This is

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

Scott presents an instrument that states "pay to the order of Scott" to Town Bank for payment.This instrument is the most common type of negotiable instrument,which is

If a bank fails to detect an alteration on a customer's check,it is liable to its customer for the loss.

A bank that pays a customer's check bearing a forged indorsement is not obligated to recredit the customer's account.

Liu signs a check "pay to the order of Marv" drawn on Liu's account in National Bank.Liu later orders National not to pay the check,but the bank pays it over Liu's order.Subsequent checks written on Liu's ac?count "bounce." Most likely liable for the costs to Liu is

Paris knowingly divulges to Media Exposure magazine information about Randy's e-money payments to City Bank without the consent of Randy or City Bank.Paris may be in violation of federal law