Exam 27: A: Checks,the Banking System,and E-Money

A bank is not obligated to pay an uncertified check presented more than six months from its date.

Jen signs a check "pay to the order of Key" drawn on Jen's account in Lakeland Bank to buy Key's car.Jen asks Lakeland 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

UCC Articles 3 and 4 govern issues relating to checks.

Any local check deposited must be avail?able for withdrawal by check or as cash within not more than five business days from the date of deposit.

Joy steals a check from Kyle,forges his signature,and transfers the check to Loco Loans,Inc. ,for value.Unaware that the signature is not Kyle's,Loco Loans presents the check to Metro Bank,the drawee,which cashes the check.Kyle discovers the forgery and insists that Metro recredit his account.Can Metro refuse? If not,from whom can the bank recover?

A check is a special type of draft.

Pippi,the manager of Quik Mart,deposits the store's receipts in its account at Regional Bank.As to the receipts,the relation?ship between Quik Mart and the bank is

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

Cornucopia Bank receives a check drawn on the account of Get-Rich Industries,Inc. ,one of the bank's customers,at 3 p.m.Friday.Harry,the pre?senter of the check,is not one of the bank's customers.The bank uses de?ferred posting with a 2 p.m.cutoff hour.If it decides to dis?honor the check,it must do so by midnight

The bank on which a check is drawn is the depositary bank.

London knowingly divulges to BreakingNews.com information about Neandro's e-money payments to Oracle Oil Corporation without the consent of Neandro or Oracle.London may be in violation of federal law

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

A drawer must have a valid legal ground for issuing a stop-payment order,or the holder can sue the drawer for payment.

Fact Pattern 27-2B Thom draws a check,on his account in State Bank in New York,payable to Digital Computers,Inc. ,in San Francisco.Digital deposits the check in its ac?count at First National Bank.First National 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 State Bank. -Refer to Fact Pattern 27-2B.When Digital's bank received the check,it was required to pass it on

Whenever a bank-customer relationship is established,certain contractual rights and duties arise.

Clay issues a check payable to Discount Mart.Ernestina,Discount's cashier,forges the store's indorsement and deposits the check in her bank ac?count.Clay's bank,First Friendly Bank,pays the check.Clay can recover from

Daria writes a check for $100 drawn on Estimable Bank and presents it to Fast Cash,Inc. ,for payment.If the check is not backed by sufficient funds,Daria may be prosecuted for

A forged signature on a check has no legal effect as the signature of a drawer.

A customer has a right to stop payment on a check that has been certified.

When a customer's negligence contributes to a forgery,the bank normally is obligated to recredit the customer's account for the amount of the check.