On January 22, 2002, as a result of a real estate transaction, First Service Title Agency issued
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On the same day that First Service Title Agency placed the stop payment orders on the checks, Randall Davis, who had various accounts at Firstar Bank, presented all three checks to Firstar Bank. Firstar Bank paid the checks to Davis even though Davis was not a party to any of the checks, the checks contained multiple indorsements that appeared to be in the same handwriting, and they all were marked "for deposit only." Key Bank subsequently returned the checks to Firstar Bank with the notation "Payment stopped." Firstar Bank then filed suit against First Services Title Agency and Davis. One of the issues in the suit against First Services Title Agency was whether Firstar Bank was a holder in due course of the three checks. Is Firstar Bank a holder in due course of the three checks that it paid to Davis and now wants to obtain payment on from the drawer, First Services Title Agency?
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Business Law The Ethical Global and E-Commerce Environment
ISBN: 978-0071317658
15th edition
Authors: Jane Mallor, James Barnes, Thomas Bowers, Arlen Langvardt
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