Exam 27: Bank Deposits, Collections, and Funds Transfers

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?

A payment order for a wholesale funds transfer must:

Which of the following is true of a collecting bank?

Which warranties does a collecting bank give?

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:

If a depositor in First Bank takes a check written on Valley Bank to First Bank to deposit, it will not normally be credited to his account until collected from the payor bank.

An oral stop payment order is binding on the drawee bank for 14 calendar days.

Any unauthorized indorsement must be asserted within one year under the UCC's statute of limitations provision.

What is electronic funds transfer? Why do banks like it? What provisions are in the law to protect the customer who uses electronic funds transfer?

A payor bank is required to dishonor an uncertified check that is more than six months old.

If a bank pays on a check even though it has a "stop payment order," the bank is liable to the customer only if the customer can prove a loss because of the payment.

A payor bank is under no obligation to its customer to pay an uncertified check that is more than six months old.

When a payor bank gets an item payable from a customer's account with insufficient funds, the bank may:

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

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

A provisional credit occurs at the time a depositary bank permits a customer to draw funds against the deposited check.

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.

If Ben Stewart has a checking account at First Bank:

Congress enacted the Truth in Savings Act which requires all depositary banks to disclose in great detail to consumers the terms and conditions of their deposit accounts.