Exam 29: Bank Deposits, Collections, and Funds Transfers

Sylvia draws a check on ABC Bank payable "to the order of Ann Smith." Ann indorses it and deposits it in First Bank. First Bank is a:

If Valley Bank pays a check over a stop payment order of one of its customers, Valley Bank is subrogated to the rights of:

Which of the following is correct with respect to a bank customer's duty to discover and report unauthorized signatures?

If a depositor in First Bank takes a check written on Valley Bank to First Bank to deposit, it will normally be credited to the depositor's account at the time of the transaction. This is called a "provisional" credit.

A payor bank is under an obligation to pay an uncertified check that is nine months old.

What are wholesale funds transfers? What governs these transfers?

Under the Competitive Equality Banking Act, a nonlocal check must clear in no more than four intervening business days.

A check drawn on a bank is an order to pay a sum of money and an authorization to charge the amount to the drawer's account. The drawer may countermand this order by which of the following?

If a bank pays on a check after the death of its customer, the customer's estate is not automatically entitled to reimbursement.

Under Article 3 of the Code, collecting banks give to a transferee the same basic warranties as those given by other parties who transfer commercial paper.

Banks may not pay checks issued by a customer who has died.

If a checking account customer's funds are insufficient to pay all of the items that the bank receives on that account on a given day, the bank may charge the items against the account in any order the bank deems convenient without incurring liability to the customer/drawer for choosing one item over another.

Helen deposits a $50 check in her account at First Bank at 4:00 on Friday. The bank is closed on Saturday and Sunday, but opens again on Monday. The midnight deadline for First Bank would be:

On April 6, Ellen sends a check for a magazine subscription and then discovers she has already paid for it. She calls her bank and orders that the bank not make payment. That order will be good until:

Which of the following is/are excluded from UCC Article 4A coverage?

Mark takes his wife's paycheck to Valley Bank to deposit in their joint account. Valley Bank may deposit the check without his wife's indorsement unless the indorsement is expressly required.

An instrument indorsed "pay any bank" may nevertheless have an individual as a holder.

In most cases, the collecting bank is the same as the payor bank.

First Bank pays a forged check on Donald's account. Donald finds it when, the day he receives it, he is examining his bank statement for the month. He brings it to the bank the next day to call it to their attention, but they refuse to credit his account. The bank has an obligation to recredit Donald's account.

The desired effect of EFTS is to: