Exam 19: Checks and Banking in the Digital Age

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

First Neighborly Bank agrees to honor Glen's checks even when his ac?count has insufficient funds.Later,the bank refuses to pay an item pay?able to Holly that would create an overdraft.The bank is

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

Jaqi is the holder and payee of a check drawn by Kerin on Lake City Bank.Jaqi takes the check to the bank to have it certified.After certification

Steve steals one of Tricia's checks and forges her signature.Tricia's bank,United Bank,pays the check.Tricia can recover from

Fact Pattern 19-3 Ryley draws a check,on his account in Second National Bank in New York,payable to Tuner TV,Inc. ,in San Francisco.Tuner deposits the check in its ac?count at US Bank.US 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 Second National. -Refer to Fact Pattern 19-3.Second National Bank (Ryley's bank)is

Generally,a cash deposit is available for withdrawal the same business day.

Elmo pays First Star Bank $1,000 plus a service fee to draw a check on itself made payable to Go Delivery Service.This is

Banks are required to constantly verify the life and competence of their drawers.

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

A drawee bank may be liable to its drawer customer if the bank refuses to honor the drawer's check when there are sufficient funds in the account.

Dixy's debit card,issued by Eagle Bank,is stolen and used without Dixy's permission.Dixy tells Eagle Bank within thirty days.Dixy may be re?quired to pay no more than

A payor bank is also a collecting bank.

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

Fact Pattern 19-3 Ryley draws a check,on his account in Second National Bank in New York,payable to Tuner TV,Inc. ,in San Francisco.Tuner deposits the check in its ac?count at US Bank.US 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 Second National. -Refer to Fact Pattern 19-3.When US Bank received the check,it was required to pass it on

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

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

Under the UCC,a bank is "a person engaged in the business of banking."

Five-Star Bank has certain obligations with respect to consumer data and privacy under

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