fall 2010 bule 402 final group 1 work

Fall 2010 bule 402 - sends the check to Citi bank(payor and Mobin gets paid 12.Checking agreement and Article 4 of UCC 13.Skip 14.If the customer

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Heather Shaner, Anthony LaMastro, Mobin Jacob, shaza syrus, Johanna Govea, Tylery Khai 1. The primary liability is the unconditional liability. You have to pay unless you have a valid defense. Secondary liability is when you will pay only if the person with primary liability does not. 2. Skip 3. Honor it and clear the check or dishonor the check and not clear it. 4. Skip 5. Yes the drawee bank is liable if it pays a check on which the drawers name is forged. The bank can recover the money only if the payee had reason to suspect the forgery. 6. Skip 7. It is an illegal crime to write a check for $5000 when you have $500 because it is considered as bouncing a check. 8. Skip 9. Fraud 10.Skip 11.Anthony (Citi bank) writes a check to Mobin (Bank of America- depository , and collecting bank) who deposits it to Bank of America. Bank of America then sends the check to the Federal Reserve (intermediary bank, collector bank, and presenting bank) if it is from a different city. The Federal Reserve then
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Unformatted text preview: sends the check to Citi bank (payor) and Mobin gets paid. 12.Checking agreement and Article 4 of UCC 13.Skip 14.If the customer dies, the bank may continue to pay checks for 10 days after it learns of the death, unless it receives a stop payment order from someone claiming an interest in the account. 15.Skip 16.If a bank pays a check that has been altered, the customer is liable only for the original terms of the check, and the bank is liable for the balance. The one exception is that the alteration is obvious the bank is liable for the full amount of the check because is should have known better than to pay it in the first place. 17.Skip 18.Notify the bank within 2 days and you will be liable for only the first $50 stolen. If you report it within 60 days you are liable for $500 and after 60 days you are liable for the full amount. The website is http://www.ftc.gov/bcp 19.skip...
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This note was uploaded on 02/05/2011 for the course BULE 402 taught by Professor Shubin during the Fall '10 term at George Mason.

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Fall 2010 bule 402 - sends the check to Citi bank(payor and Mobin gets paid 12.Checking agreement and Article 4 of UCC 13.Skip 14.If the customer

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