Question: Doug takes a $ 5 0 0 check drawn by Gail to Gail's drawee bank to cash it . Gail has over $ 1 0
Doug takes a $ check drawn by Gail to Gail's drawee bank to cash it Gail has over $ on deposit in her account. If her bank refuses to pay Doug:
The bank has incurred a liability to Gail for its improper refusal to pay the check if it is not "stale."
Doug can sue the bank and demand payment if the check is not "stale."
The bank has no liability to Doug or Gail.
If the check is over days old, the bank has a right to refuse payment.
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