fall 2010 bule 402 liability for NI banks

fall 2010 bule 402 liability for NI banks - Commercial...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
2/6/11 Commercial Transactions: Liability for Negotiable Instruments Banks and Their Customers Prof. Julie Shubin Bule-402-002-S10 Commercial Law © Julie Shubin 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2/6/11 “This area of law is important because virtually everyone has written a check or used an ATM and because the law regarding these transactions is changing rapidly.”
Background image of page 2
2/6/11 Who’s Who Despositary Bank – the first to take check. Payor Bank – the bank that pays the issuer’s check. Intermediary Bank – any bank that handles a check during the collection process, except the depositary or payor bank. Collecting Bank -- any bank that handles a check during the collection process, except the payor bank. Presenting Bank – a bank that submits a
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2/6/11 Bank’s Duty to Provide A bank is not required to provide a monthly statement, but most do. A statement (if provided) must disclose: Interest rate paid Amount of interest earned Fees imposed by the bank The number of days covered by the statement When an account is opened (and in ads), the bank must disclose:
Background image of page 4
2/6/11 The Bank’s Duty to Pay A bank must pay a check if the check is authorized by the customer and complies with the terms of the checking account agreement. A bank is not required to pay a check on an overdrawn account, but may choose to do so. It is then allowed to either
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2/6/11 Wrongful Dishonor If a bank violates its duty and wrongfully dishonors an authorized check, it is liable to the customer for all actual and consequential damages.
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

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.

Page1 / 20

fall 2010 bule 402 liability for NI banks - Commercial...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online