Exam 27: B: Checks and Banking in the Digital Age

No financial institution can disclose nonpublic personal information about a consumer to an unaffiliated third party under any circumstances.

Thelma signs a check "pay to the order of Uri" drawn on Thelma's ac?count in Verity Bank.Thelma has $400 in her account but the amount of the check is $500,which the bank pays.This is

Each bank in a collection chain must pass a check on before midnight of the next business day following its receipt.

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

A customer has two days to discover and notify the bank of any error on the monthly statement involving an electronic transfer of funds.

Fact Pattern 27-1A 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 27-1A.Mike is responsible for

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

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

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

A certified checks is an instrument that has been accepted for payment by the bank on which it is drawn.

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

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

Johnny writes a check to Katie as payment for a 3D DVD player but soon discov?ers the player is broken.He goes to the drawee bank and orally author?izes Sissy,a bank officer,to stop payment on the check.This order is valid for

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

City Bank mistakenly transfers $1,000 from the account of Donna,its cus?tomer,to the account of Earl in First Federal Bank.The transfer is done electronically.When City Bank learns of the mistake,it credits Donna's account and asks First Federal to "return" $1,000.First Federal refuses.City Bank files a suit against First Federal,claiming that it is in violation of the Electronic Fund Transfer Act.How might the court rule?

A cashier's check is an instrument in which a bank draws a check on itself.

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

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.

Fact Pattern 27-1A 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 27-1A.When Mike receives his National statement,he demands that the bank investigate the matter and recredit his ac?count.The bank

A check that is presented for payment more than one month from its date is a stale check.