Exam 57: Banking and Payment Systems

State Bank's policy requires that indorsements on checks exactly match the names of the payees. Tovar, an employee of United Company, issues and indorses several payroll checks in the names of former employees and deposits them into her account at State. United files a suit against State to recover the funds. Most likely to suffer the loss is

Limon, a drug trafficker, and Masri, a terrorist, use prepaid ATM cards to move large amounts of cash. From Limon and Masri's perspective, these cards offer an advantage because they

Nate, a money launderer, uses prepaid ATM cards exchanged for virtual assets through various game-associated Web sites. From Nate's perspective, holding assets in the virtual world offers an advantage because it

National Bank's policy is to examine signatures only on checks exceeding $2,500. Checks for lesser amounts are selected randomly for signature verification. National fails to verify a forged drawer's signature on a check for $1,500 drawn on Odel's account. Most likely liable for the amount is

In accord with banking industry practices, US Bank's computers are pro?grammed to verify signatures only on checks exceeding $1,000. US Bank cashes a check for $900 on the forged signature of its customer Vita. Under the revised UCC Article 3, with respect to reasonable commercial standards, US Bank is

Huey signs a promissory note in reliance on Ian's assurance that it is not a note. Ian negotiates the note to Jinx Collection Agency, which is a holder in due course (HDC) of the note. When Jinx tries to collect, Huey refuses to pay. Under the HDC doctrine, the loss falls on

Evon, a resident of France, draws a check on Georges Banque payable to Hugo. Compared to the United States, in France this check is effectively

Like most Europeans, Frank, a resident of Great Britain, pays recurring monthly bills through automatic bank transfers. Compared to the electronic payment systems available in the United States, the European Union's system has led to a shift