Asked by Rocio Lopez on Jul 04, 2024
Verified
A bank must re-credit a customer's account when the bank pays a check on which the drawer's signature is forged.
Drawer's Signature
The signature of the person who writes a check or draft, legally binding the drawer to the terms of the document.
Re-Credit
The process of restoring funds to an account, typically after a return or correction of a billing error.
- Grasp the legal responsibilities of banks in cases of forged drawer signatures.
Verified Answer
GD
Girlbert DerozinJul 11, 2024
Final Answer :
True
Explanation :
Banks are generally required to re-credit a customer's account if they pay out on a check that has a forged signature, as the bank has a duty to only process transactions that are properly authorized by the account holder.
Learning Objectives
- Grasp the legal responsibilities of banks in cases of forged drawer signatures.
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