Exam 41: Checks and Electronic Fund Transfers

If a bank pays a check that bears a forged signature of the drawer, the transaction will be treated as one in which the bank paid out of:

Which article of the Uniform Commercial Code covers electronic funds transfers between businesses and financial institutions?

The Electronic Funds Transfer Act (EFTA) now addresses many of the issues that arise out of consumer use of EFT systems, while _____ of the Uniform Commercial Code deals with the funds transfers that are outside the overage of EFTA.

If an account is overdrawn, the customer owes the bank the amount of the overdraft, and the bank may take that amount out of the next deposit that the customer makes or from another account that the depositor maintains with the bank.

Sasha drew a check payable to the order of Janice on First Bank. Janice indorsed the check and sold it to Karl, who took the check to First Bank and requested that the bank certify the check. The bank did so. Later, Karl presented the check for payment, but First Bank refused to pay. In this scenario, which of the following parties may Karl sue for not receiving payment?

Eli draws a check for $1,500 on Town Bank. The check is made payable to the order of Carmen. Carmen endorses and sells the check to Nita. At Nita's request, Town Bank certifies the check. In this scenario, which of the following is a true statement?

Under revised Article 3 of the Uniform Commercial Code, when multiple forgeries are made by the same wrongdoer, the customer generally cannot hold the bank responsible for paying, in good faith, any such checks after an alteration was available to the customer for a reasonable period, not exceeding _____ days.

Describe the limitations on the bank's right or duty to charge the depositor's account for the check.

A person may stop payment on a check:

Which of the following is an actual damage that a bank would be liable for when a bank wrongfully dishonors a check?

Explain the difference between a certified check, a cashier's check, and a teller's check.

A check on which a bank is both the drawer and the drawee is a:

For improper execution or failure to execute payment orders, banks can be liable to:

Describe the provisions of the Electronic Funds Transfer Act.

Normally, a drawee bank is not obligated to certify a check.

A bank that knows of a customer's death:

Any person authorized to draw a check may stop payment of it.

A written stop-payment order is:

Even when a bank receives a properly drawn and payable check on a person's account and there are sufficient funds to cover the check, the bank is not under a legal duty to pay it.

Which of the following is a factor of the Electronic Funds Transfer Act that differs from the Fair Credit Billing Act?