Visiting Nurses Association of Telfair County, Inc. (VNA), maintained a checking account at Security State Bank in

Question:

Visiting Nurses Association of Telfair County, Inc. (VNA), maintained a checking account at Security State Bank in Valdosta, Georgia. Wanda Williamson, a VNA clerk, was responsible for making VNA bank deposits, but she was not a signatory on the association’s account. Over a four-year period, Williamson embezzled more than $250,000 from VNA by forging its indorsement on checks, cashing them at the bank, and keeping a portion of the proceeds. Williamson was arrested, convicted, sentenced to a prison term, and ordered to pay restitution. VNA filed a suit in a Georgia state court against the bank, alleging, among other things, negligence. The bank filed a motion for summary judgment on the ground that VNA was precluded by Section 4–406(f) of the Uniform Commercial Code from recovering on checks with forged indorsements. Should the court grant the motion? Explain.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Business Law Text and Cases

ISBN: 978-0324655223

11th Edition

Authors: Kenneth W. Clarkson, Roger LeRoy Miller, Gaylord A. Jentz, F

Question Posted: