CHAPTER PROBLEM

On March 6, W.L. Bundy was declared incompetent by the Superior Court for Sacramento County. On March 7, Security Bank issued a cashier's check to Bundy for $10,000, payable to him. On March18, M.P. Barnes was appointed to handle Bundy's affairs. On August 5, Bundy endorsed the check to a partnership which, in turn, deposited the check in the Hellman Bank. The check was sent to Security Bank for payment. Payment was refused by Security Bank, but not before the partnership had withdrawn $5,000 from the Hellman Bank. Hellman sued Bundy, Security Bank and the partnership for $5,000. Bundy, through Barnes, sued Security Bank for $10,000. Does Hellman Bank get $5,000 from Bundy? Does Bundy get $10,000 from Security Bank? Why or why not?