Asked by Aaron Russell on Jul 02, 2024
Verified
Which of the following statements is true concerning multiple forgeries and alterations?
A) A customer cannot hold the bank responsible for paying,in good faith,any altered checks after he/she receives the statement of account.
B) A bank will be held liable for honoring altered checks that were presented to the bank multiple times.
C) A customer bears the responsibility for any forgeries and subsequent forgeries that take place,even if he/she has notified the bank.
D) A bank will be held liable even if it proves that it suffered a loss due to the customer's failure to examine his/her statement and notify the bank.
Multiple Forgeries
The act of falsifying or making unauthorized copies of documents, signatures, or artworks on more than one occasion.
Altered Checks
Checks that have been tampered with or modified unauthorizedly, affecting the intended payment amount or recipient.
Statement Of Account
A record of the transactions and balances between two parties, typically used in billing and account management.
- Become familiar with the legal safeguards and requisites set for consumers and banking institutions under the Uniform Commercial Code (UCC) in relation to altering and forging checks.
Verified Answer
LO
Lennox O.Owino7 days ago
Final Answer :
A
Explanation :
The customer generally cannot hold the bank responsible for paying,in good faith,any such checks after the statement of account or item that contained the first unauthorized customer's signature or an alteration was available to the customer for a reasonable period,not exceeding 30 calendar days.
Learning Objectives
- Become familiar with the legal safeguards and requisites set for consumers and banking institutions under the Uniform Commercial Code (UCC) in relation to altering and forging checks.