Triplett attempted to arrange a $2,850,000 loan through Meyer Rabin and his Consumer’s Investment Company (CIC). CIC issued a commitment letter conditioned on the payment of a $14,250 commitment fee and the personal guarantee of C. D. Wyche. Triplett sought an additional loan from E. S. Tubin to cover the commitment fee. Tubin agreed to provide the $14,250 if the money would be ‘‘safe’’ pending the closing of the $2,850,000 loan and if he would receive $4,500 for the use of his money. Triplett agreed, and Tubin purchased a $14,250 cashier’s check payable to Melvin Rueckhaus, his attorney. Rueckhaus typed the following indorsement on the back of the check: ‘‘PAY TO THE ORDER—CONSUMERS INVESTMENT CO. and CHARLES D. WYCHE, SR.’’
Rabin presented the check to Fair Park National Bank for immediate credit to CIC’s account. Not knowing that Rabin had forged Wyche’s signature, the bank complied, and Rabin subsequently depleted CIC’s account. The loan was never closed, and the $14,250 was never returned to Tubin. Is Fair Park National Bank liable to Tubin? Discuss.