BLAW 333 Chapter 27 TF
A bank's duty to honor its customer's checks is absolute.
False; A bank's duty to honor its customer's checks is not absolute (although when a bank receives an item payable from a customer's account, but there are insufficient funds in the account to cover the amount, the bank can choose to pay it and charge the customer's account). Failing to pay an overdraft will not subject the bank to criminal prosecution, though a person who writes a bad check may be prosecuted (and sued).
A forged drawer's signature on a check is effective as the signature of the person whose name is signed.
False; A forged drawer's signature on a check has no legal effect as the signature of the party whose name is signed. If the bank pays the check, the bank must recredit the customer's account (unless the customer's negligence contributed substantially o the forgery).
if a bank fails to honor a customer's stop-payment order, it may be liable to the customer for more than the amount of the loss suffered by the drawer because of the wrongful payment.
False; If a bank pays a check over a customer's proper stop-payment order, the bank is obligated to recredit the customer's account, but only for the amount of the actual loss suffered by the drawer because of the wrongful payment.
All funds deposits in all bank accounts must be available for withdrawl no later than the next day.
False; Under the Expedited Funds Availability Act of 1987, there are different availability schedules for different funds, depending on such factors as the location of the bank on which an item is drawn, what type of item it is, the age and activity of an account, and the amount of the item.
A bank that fails to investigate an error and report it's conclusion promptly to the customer is in violation of the Electronic Fun Transfer Act (EFTA).
True.
A bank that pays a customer's check bearing a forged indorsement must recredit the customer's account.
True.
A check is a draft drawn on a bank.
True.
A customer must examine the statements provided by the institution handling his or her account and notify it of any errors within sixty days.
True.
Generally, funds must be available on the next business day for cash deposits.
True.
The rights and duties of a bank and it's customers are contractual.
True.