In Lor-Mar/Toto v.Constitution Bank,where checks were forged on a company account with a signature that looked like the stamped signature used by Lor-Mar,the court held that the bank was liable to Lor-Mar for negligence for allowing someone to get official check paper from the bank.

Question

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The court held that the bank was not liable for negligence because the forgeries were facilitated by the company's own lack of internal controls, not by the bank's actions.

In Lor-Mar/Toto V