tailieunhanh - Gale Encyclopedia Of American Law 3Rd Edition Volume 1 P53

Gale Encyclopedia of American Law Volume 1 P53 fully illuminates today's leading cases, major statutes, legal terms and concepts, notable persons involved with the law, important documents and more. Legal issues are fully discussed in easy-to-understand language, including such high-profile topics as the Americans with Disabilities Act, capital punishment, domestic violence, gay and lesbian rights, physician-assisted suicide and thousands more. | 508 BANKS AND BANKING gave something in exchange for the forged check. If the depositor s negligence was a factor in the forgery the bank can be excused from the liability. A bank is also responsible for determining the genuineness of the endorsement when a depositor presents a check for payment. A bank is liable if it pays a check that has been materially altered unless the alteration was due to the drawer s fault or negligence. If a bank pays a check that has a forged endorsement it is liable for the loss if it is promptly notified by the customer. In both cases the bank is entitled to recover the amount of its loss from the thief or forger. A drawee bank that is ordered to pay a check drawn on it is usually not entitled to recover payment it has made on a forged check. If however the drawee bank can demonstrate that the collecting bank was negligent in its collection duties the drawee bank may be able to establish a right of recovery. A bank can also be liable for the wrongful dishonor or refusal to pay of a check that it has certified because by definition of certification it has agreed to become absolutely liable to the payee or holder of the check. If a bank has paid a check that has been properly revoked by its drawer it must reimburse the drawer for the loss. Drawer Liabilities A drawer who writes a check for an amount greater than the funds on deposit in his or her checking account is liable to the bank. Such a check called an overdraft sometimes results in a loan from the bank to the drawer s account for the amount by which the account is deficient depending on the terms of the account. In this case the drawer must repay the bank the amount lent plus interest. The bank can also decide not to provide the deficient funds and can refuse to pay the check in which case the check is considered bounced. The drawer then becomes liable to the bank for a handling fee for the check as well as remaining liable to the payee or subsequent holder of the check for the .