Exam 27: Bank Deposits, Collections, and Funds Transferspart Vi: Agency

A written stop payment order is effective indefinitely.

Sue deposits in her account at First Bank a $50 check drawn on Valley Bank.First Bank transfers the check to Second Bank, which in turn forwards it to Valley Bank, which pays the item.Valley Bank is the:

Which of the following is NOT a duty of a collecting bank in the collection process?

What is the effect of a payor bank's dishonor of a check?

A check is drawn on Jones Bank by Tamara and made payable to the order of Chris.Chris indorses it "for deposit only, Acct.2275, Chris" and gives it to Plainer Bank for deposit.Plainer stamps "pay any bank" on the check along with its indorsement and negotiates it to Stone Bank.Stone Bank simply stamps "Stone Bank" and negotiates it to SmallTown Bank.If SmallTown wants to negotiate it to the electric company to pay its bill, can it?

If you lose your wallet along with your ATM card, your liability is

Lane Co.instructs its bank, Second Street Bank, to pay $200,000 to Moffett, Inc., also a customer of Second Street Bank.The bank executes the payment order by crediting Moffett's account with the $200,000 and notifying Moffett that the credit was made and is available.In this case:

A system for electronic funds transfers (EFT) in which machines are located in a merchant's store and are activated by the consumer's identification card and code is:

Emma calls her bank to issue an oral stop payment order on a check on March 1st.She then leaves town for two weeks to visit her mother.When she returns, she goes to the bank to sign a written stop payment order, but finds the bank has already paid the check.What recourse does she have? Explain.

Caryn deposits a check in her bank at 2:30 on Monday.The bank may, under the Code, treat the check as having been deposited on Tuesday for purposes of meeting the midnight deadline rule.

If a drawer files a stop payment order on a check, he is automatically relieved of liability for the obligation.

A preauthorized electronic transfer from a consumer's account:

Doug takes a $500 check drawn by Gail to Gail's drawee bank to cash it.Gail has over $10,000 on deposit in her account.If her bank refuses to pay Doug:

A depositary bank is any bank handling an item for payment.

Collecting banks give to a transferee the same basic warranties as those given by other parties who transfer commercial paper, except they also may give encoding warranties.

The relationship between the payor bank and its checking account customer is exclusively governed by statute and leaves no room for contractual modifications.

An association of banks and other payors whose members settle accounts with each other on a daily basis is a:

Which of the following is true about UCC Article 4A?

What are a payor bank's rights to subrogation upon an improper payment of an instrument?

David dies an untimely death in a boating accident two days after writing a check to his landlord.The bank finds out about David's death the day after it happens.When the landlord presents the check to the bank two weeks later, the bank must pay it unless David's heirs object.