Smith made out a check drawn on Citizens First Bank payable to Tom Howard. Carson stole the
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Smith made out a check drawn on Citizens First Bank payable to Tom Howard. Carson stole the check from Howard, forged Howard’s indorsement, and cashed it at Merchant’s Bank. At this point, Howard realized that the check had been stolen, and contacted Smith, who ordered his bank, Citizens First, to stop payment on the check. When Merchant’s Bank presented it to the drawee, Citizens First Bank, Citizens Bank refused to honor (pay) the check because of the stop payment order. Sketch this out, and figure out: Which party is taking the hit at this point? Does this party have any recourse? If so, against whom?
Related Book For
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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