Bul test 2

In the event that there is a conflicting, superior claim to an instrument, a holder in due course will not be able to collect payment

False

A paper check must be presented for payment- it cannot be retained at its place of deposit, with only its image or description presented electronically.

False

Electronic banking makes it easier to issue a stop-payment order

False

If a bank pays a stale check in good faith but without consulting the customer, the bank has no right to charge the customer's account for the

False

If any financial institution, such as a brokerage house, handles a check for payment or collection, the check is covered by UCC Article 4.

False

Because checks serve as a substitute for cash, they can facilitate financial record keeping.

True

If only a bank's drive-through facility is open, a check deposited on Saturday will not trigger the bank's midnight deadline until the following Monday

True

Misha's debit card, issued by National United Bank, is stolen and used without her permission. She tells the bank within thirty days. She may be required to pay no more than

$500

Ally writes a check to Beri on Ally's account at Community Bank. The bank dishonors the check even though Ally has sufficient funds in her account. The bank is liable to

Ally

A bank must re-credit a customer's account when the bank pays a check on which the drawer's signature is forged

True

When a bank certifies a check, the bank is agreeing in advance to accept the check when it is presented for payment and to make payment with funds reserved for the purpose.

True

Finance Bank receives a check drawn on the account of Enterprise Industries, Inc., one of the bank's customers, at 3 p.m. Friday. Dora, the presenter of the check, is not one of the bank's customers. The bank uses deferred posting with a 2 p.m. cutoff hour. If it decides to dishonor the check, it must do so by midnight​

Tuesday

Ken presents an instrument that states "pay to the order of Laura" to Metro Bank for payment. This instrument is the most common type of negotiable instrument, which is

a check

Rhea writes a check for $100 drawn on Savers Credit Union and presents it to Timpani Jewelers for payments. If the check is not backed by sufficient funds. Rhea may be prosecuted for

fraud

Ruth takes her car to Service Center, which repairs the car and bills for $500. She writes out a check drawn on Tempo Bank, but later, believing that Service Center did not fix the car properly, issues a stop-payment order. If Tempo pays the check, the bank

is liable for Ruth's loss due to the wrongful payment

Gary writes a check drawn on Hilltop Bank for $400 "payable to Ian" on May 1. Gary dies on May 3. Ian presents the check to the bank on May 5. Unaware of Gary's death, the bank

may pay the check

Faye forges Greta's signature on a check "payable to the order of Faye" drawn on Greta's account in Home Bank. Most likely, if the bank pays the check

the bank will have to recredit Greta's account

Curt issues a check payable to Discount Mart. Ethel, Discount's cashier forges the store's indorsement and deposits the check in her bank account. Curt's bank, Farmers Bank, pays the check. Curt can recover from

the bank, which can recover from Ethel

Beca signs a check "pay to the order of City College" drawn on Beca's account in Delta Bank to pay her tuition. Beca is

the drawer

When processing a check, Platinum Bank encodes information, such as the amount of the check, in the item. Platinum thereby warrants to any subsequent bank or payor

the encoded information is correct

Franco buys a sofa from Grey at a garage sale. Franco writes Grey a check for $50 to pay for the couch. Grey is

the payee