Barry Wrote a Check Drawn on His Account at ABC

Multiple Choice

Barry wrote a check drawn on his account at ABC Bank for $500 made out to Susie Smith for payment for yard work.Barry put the check properly addressed to Susie in the U.S.mail.Through unknown means,a thief obtained the check.The thief altered the name of the payee to Trudy Smith,and through expertly forged documents opened an account at XYZ Bank and obtained the funds from Barry's check along with a number of other stolen checks.When the check was then presented to ABC Bank for payment,ABC Bank charged Barry's account in the amount of $500.A few days later,Susie asked Barry for her money; and,after investigating,he became aware of the situation.Assuming the court follows the reasoning of the case in the text,Halliburton Energy Services Inc.,v.Fleet National Bank,which of the following is true regarding whether Barry is entitled to a return of his funds?

A) As a matter of law, the presenting bank is charged with notice of forgeries; therefore, XYZ must take the loss, and Barry is entitled to a return of his funds.
B) That Susie, the payee, bore a risk of loss and that, although Barry is not entitled to return of the funds, his debt to Susie is discharged.
C) That Barry is entitled to a return of only ½ of the funds because in such cases, the collecting bank, XYZ Bank, and the drawer, Barry, must share the loss.
D) That Barry is entitled to a return of the funds only if he can establish that he notified ABC Bank of the problem within 30 days of receiving the bank statement showing the alteration.
E) That Barry is entitled to a refund only if he can establish that XYZ Bank failed to exercise ordinary care in taking the instrument.