Asked by Jenna Hallett on Jul 15, 2024
Verified
Laura gets a statement and a pile of paid checks from her bank on June 1.Within the pile of checks,is one check with a forged drawer's signature.Laura does not notify the bank about the forged check until the next month,July 1.Does this delay remove the bank's obligation to recredit Laura's account?
Forged Drawer's Signature
A fraudulent signature applied to a negotiable instrument, such as a check, by someone other than the account holder, intended to deceive the bank or recipient.
Forged Check
A check that has been illegally modified or created to defraud, including altering the amount, making or endorsing without authorization.
- Recognize the legal doctrines and banking regulations concerning check processing and stop-payment directives as demonstrated in judicial decisions.
- Identify the norms that banks are required to adhere to, including the practices of ordinary care and good faith, during their operations.
Verified Answer
BM
Brenda MarshallJul 21, 2024
Final Answer :
No.The customer has one year from the time he gets the statement to report unauthorized signatures.
Learning Objectives
- Recognize the legal doctrines and banking regulations concerning check processing and stop-payment directives as demonstrated in judicial decisions.
- Identify the norms that banks are required to adhere to, including the practices of ordinary care and good faith, during their operations.