Exam 27: Bank Deposits, Collections, and Funds Transfers

A critical issue in banking law is at what point an item is finally paid.

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

Under Revised Article 4,a bank customer may encode its own checks,and if it does,the encoder warrants to any subsequent collecting bank and to the payor that information is properly encoded.

Match each statement with the correct term below. -restrictive indorsement

Match each statement with the correct term below. -special indorsement

A bank may pay a check after the death of its customer for ten days following the date of his death unless a person claiming an interest in the account orders the bank to stop making such payments.

Despite its efficiency,MICR has created several problems which include:

Match each statement with the correct term below. -maker

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:

Which warranties does a collecting bank give?

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.

D drew a $100 check on ABC Bank payable "to the order of P." P cashed the check at National Bank.National Bank is an agent of P until the drawee bank pays the check.

A preauthorized electronic transfer from a consumer's account:

ABC Bank sent Joanne,a depositor,her January statement on January 31.Within what length of time after this date will Joanne have to notify ABC bank of any instruments containing alterations or unauthorized signatures included in her January statement?

An objective of the Check 21 Act is to:

Match each statement with the correct term below. -holder

Match each statement with the correct term below. -allonge

Mary receives her monthly bank statement on December 30th.She looks at it quickly,then sets it aside.Three days later,she examines it again and discovers a forged check.What must she do to avoid responsibility for the check?

Which of the following is true with regard to the federal Electronic Funds Transfer Act?

Match each statement with the correct term below. -drawer