Asked by Michelle Chrisette on Jun 06, 2024
Verified
Jack Roberts indorsed his paycheck "For Deposit to My Account No.4976463 at National Bank." In the meantime,he loses the check and Mary Green finds it.If Green tries to cash the check at a check-cashing service and it gives her the money,what is the result?
A) Roberts does not have any legal remedies.
B) National Bank will be liable to Roberts for converting his check.
C) Green will be liable to Roberts for converting his check.
D) The check-cashing service will be liable to Roberts for converting his check.
Check-Cashing Service
A financial service where checks are cashed for a fee, offering immediate access to the funds rather than waiting for bank clearance.
For Deposit
A notation indicating that funds are to be deposited into a bank account rather than cashed or used for another purpose.
Legal Remedies
Measures granted by the court to enforce a right, compensate for an injury, or rectify a wrong. This includes damages, injunctions, and specific performance.
- Gain insight into the effects of restrictive indorsements and their application within banking operations.
- Comprehend the tasks and commitments of participants in dealings concerning negotiable instruments.
Verified Answer
ZK
Zybrea KnightJun 07, 2024
Final Answer :
D
Explanation :
A depositary bank (a bank that takes an item for collection)or payor bank (the drawee bank)that takes an instrument for deposit or for immediate payment over the counter that has been indorsed "for deposit" or "for collection" will be liable for conversion unless the indorser received the amount paid for the instrument or the proceeds or the bank applied the amount consistently with the indorsement.
Learning Objectives
- Gain insight into the effects of restrictive indorsements and their application within banking operations.
- Comprehend the tasks and commitments of participants in dealings concerning negotiable instruments.