Asked by Dekia Mitchell on May 01, 2024
Verified
Which of the following is most true regarding checks with altered amounts?
A) The bank may not pay such checks as altered in all cases.
B) The bank may pay such checks as altered where the alteration is due to the customer's negligence and the alteration is not obvious.
C) The bank must pay such checks as originally drawn.
D) The bank cannot ever pay such checks.
Altered Amounts
A term related to the unauthorized modification of the numerical value, conditions, or specifications recorded in a financial document or instrument.
Customer's Negligence
Refers to situations where a customer fails to exercise reasonable care, leading to loss or damage.
Drawn Originally
Refers to the primary or initial creation or drafting of a document or artifact.
- Appreciate the legal guidelines and requirements defined for consumers and banking sectors by the Uniform Commercial Code (UCC) with respect to the tampering and counterfeiting of checks.
Verified Answer
EW
Emily WillisMay 02, 2024
Final Answer :
B
Explanation :
Sometimes,the alteration of a check is so skillful that the bank cannot detect it.In that case,the bank is allowed to charge to the account the amount for which the check originally was written.If the drawer is negligent and contributes to the forgery or alteration,he may be barred from claiming it as the reason that a particular check should not be charged to his account.
Learning Objectives
- Appreciate the legal guidelines and requirements defined for consumers and banking sectors by the Uniform Commercial Code (UCC) with respect to the tampering and counterfeiting of checks.