Ekram Hassan what if the signature on this check WAS authorized and the amount was altered in such a way that the bank couldn't detect it?  MARCE 80 FAIR COOPER The bank could have charged Marcel's account for the original amount he wrote ($200). The bank could have charged Marcel's account for the amended amount ($1,200). What would the bank's obligation have been in that situation?

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If the signature on the check was authorized but the amount was altered in a way that the bank couldnt detect the situation becomes more complex In such a case the banks obligation would depend on several factors including its verification procedures the timing of the discovery of the alteration and applicable banking regulations and laws Generally speaking banks have a duty to exercise reasonable care in processing checks and detecting alterations or forgeries If the bank failed to identify the alteration due to negligence or inadequate verification procedures it could potentially be held liable for the unauthorized amount Here are some possible scenarios 1 Banks Negligence If the banks failure to detect the alteration was due to negligence or inadequate security measures the bank could ... View the full answer