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Full-Text Articles in Law
Bank Statements, Cancelled Checks, And Article Four In The Electronic Age, Norman Penney
Bank Statements, Cancelled Checks, And Article Four In The Electronic Age, Norman Penney
Michigan Law Review
My task was to prepare a short article dealing in some depth with specific problems which have arisen under Article Four of the Uniform Commercial Code (Code). Unfortunately for purposes of criticism, but happily for those affected by Article Four, a canvass of recent reported cases as well as bank operations people and bank counsel has revealed very few problems of any significance to either the general practitioner or even the so-called commercial law specialist. This prompts two comments: (1) Article Four seems to be working so smoothly that to develop a "problem" would be to make a mountain out …
Bills And Notes - Indorsements - Liability Of Drawee Bank On Forged Indorsement, John P. Williams S.Ed.
Bills And Notes - Indorsements - Liability Of Drawee Bank On Forged Indorsement, John P. Williams S.Ed.
Michigan Law Review
H applied to the plaintiff credit corporation for a loan to finance a new auto dealership. In exchange for a note and contract purportedly signed by H and his wife W, plaintiff issued a check payable to H and W. The check, after being indorsed, was paid by defendant, the drawee bank. The proceeds of the loan were used as planned, but the business subsequently failed at which time it was discovered that H had forged W's signature on the note, the contract and the check. Plaintiff sued to compel restoration of the amount of the check …
Bills And Notes - Holders In Due Course - Payment To An Impostor, Thomas S. Erickson
Bills And Notes - Holders In Due Course - Payment To An Impostor, Thomas S. Erickson
Michigan Law Review
Drawer bank drew a check on the plaintiff bank payable to a depositor on the faith of a withdrawal order purportedly signed by the depositor but actually forged by an impostor. The impostor forged the indorsement and cashed the check at defendant bank which received payment from plaintiff-drawee bank. Two years later, upon the death of the impostor, the fraud was discovered. Plaintiff-drawee bank voluntarily reinstated the drawer bank's account and, standing in the drawer's shoes, it won a judgment to have its account with the defendant reinstated. On appeal, held, reversed. The policy in favor of the free …
Bills And Notes-Negligent Conduct By Drawer Preventing His Claim That Drawee Paid On A Forged Indorsement, John S. Slavens S. Ed.
Bills And Notes-Negligent Conduct By Drawer Preventing His Claim That Drawee Paid On A Forged Indorsement, John S. Slavens S. Ed.
Michigan Law Review
X and Y, owners of a joint savings account with the plaintiff bank, delivered their bankbook to Z with a withdrawal receipt signed by both depositors in the amount of $75. Z fraudulently altered the receipt, a form used only in paying directly to a depositor, by raising the amount to $5,000, and then presented the bankbook and altered instrument to a teller employed by plaintiff, asking for $5,000. The teller, unwilling to give Z the money, was then instructed to alter the receipt so as to give it the appearance of a check. Then on behalf of plaintiff, …
Bills And Notes-Negligence Of The Depositor-Right Of The Drawee To Charge The Account, Thomas Hartwell
Bills And Notes-Negligence Of The Depositor-Right Of The Drawee To Charge The Account, Thomas Hartwell
Michigan Law Review
A depositor in the defendant bank was a large firm with a payroll clerk who prepared the employees' checks for signing by the proper officer. The clerk prepared checks for employees not then on the payroll, which the officer signed without investigation. The clerk then indorsed as the named payee, signed in her own name as final indorser, and cashed the checks at various banks. Such conduct did not seem unusual to the banks, as she would frequently cash properly indorsed checks as a favor to other employees. The returned vouchers were not examined by the depositor to detect errors. …
Bills And Notes - Rule Of Price V. Neal - Application To Nonnegotiable Instruments And Money Orders, Edward W. Adams
Bills And Notes - Rule Of Price V. Neal - Application To Nonnegotiable Instruments And Money Orders, Edward W. Adams
Michigan Law Review
From a Mississippi post office, B stole fifty-five postal money order blanks. Notice of the theft was sent by the Post Office Department to all post offices. B filled in twelve of the blanks, making them appear genuine in all respects, and presented them to be cashed at defendant bank. In reliance on a confirmation of the validity of the money orders, received by calling a branch post office, defendant cashed them, giving B cash and travelers checks and starting a bank account for the balance. Defendant presented the orders at the main post office, and they were paid without …
Bills And Notes - Price V. Neal - Duty Of Presenter Bank To Make Inquiry, Oscar Freedenberg
Bills And Notes - Price V. Neal - Duty Of Presenter Bank To Make Inquiry, Oscar Freedenberg
Michigan Law Review
A stranger opened an account in the defendant bank and deposited therein several large checks (payable to himself) forged with the signature of the president of the plaintiff bank and drawn on the plaintiff. The checks were indorsed by the forger, and also by the defendant, the latter "guaranteeing prior indorsements." After payment by the plaintiff, the amounts were credited to the forger's account and soon thereafter withdrawn. The plaintiff alleged a local banking custom which required careful watching of new accounts and which the defendant failed to observe. On demurrer to the plaintiff's petition, held, that the rule …
Bills And Notes - False Impersonation - Effect Of Absence Of Prior Negotiations With Impostor, Edward D. Ransom
Bills And Notes - False Impersonation - Effect Of Absence Of Prior Negotiations With Impostor, Edward D. Ransom
Michigan Law Review
The plaintiff obtained a draft drawn on defendant bank with the plaintiff as payee, and indorsed by her in blank. The draft was for payment of a condemnation award to be sold at a discount through a broker. The plaintiff's husband, acting as her agent, went to the broker's office with his attorney. A man came in and was introduced, by one acting as his attorney, as Harry Wolter, the owner of the award. Thereupon plaintiff's husband handed the draft to his attorney, who wrote over the blank indorsements "pay to the order of Harry Wolter." There were no further …