This preview shows page 1. Sign up to view the full content.
Unformatted text preview: to the check had insufficient funds when he accepted it and neither did Axe. So Halbert is a due course holder because if dishonored commercial paper. 6. The bank in this case is not the holder in due course because they cashed the check illegally. Because the check was made payable to Guardian of the estate of Chad Stephen Alcombrack, the bank should have required proof that Charles was the guardian such as the letters of guardianship. So Smith should file suit against Charles for fraud, not the bank. But since the bank did cash the check he could bring suit against them for cashing the illegal check....
View Full Document
This note was uploaded on 05/06/2008 for the course B A 242 taught by Professor Mr.scheib during the Spring '08 term at Pennsylvania State University, University Park.
- Spring '08