Iris has a checking account at Marconi Bank. Orrin steals one of her blank checks, writes a check for $350, and then forges Iris' signature. He then presents the check to Marconi Bank for payment. Marconi Bank pays the forged instrument. Which of the following statements is NOT true?
A) Marconi Bank will have to recredit the $350 to Iris' account upon her request, if Iris was not found to be negligent.
B) Orrin is responsible to Marconi Bank for the $350.
C) Marconi Bank must recredit the $350 to Iris' account only if she has issued a stop payment order within 10 days.
D) Iris is primarily liable if she was negligent in allowing Orrin to take the blank check .

Question

Quizplus · Accepted Answer

Marconi Bank is required to recredit Iris' account for the forged check regardless of a stop payment order, as the obligation to recredit arises from the fact that the signature was forged, not from a stop payment request.

Iris Has a Checking Account at Marconi Bank