First Bank pays a forged check on Donald's account.Donald finds it when, the day he receives it, he is examining his bank statement for the month.He brings it to the bank the next day to call it to their attention, but they refuse to credit his account.The bank has an obligation to recredit Donald's account.

Question

Quizplus · Accepted Answer

Banks are generally obligated to recredit a customer's account if they pay a forged check, provided the customer reports it promptly upon discovery.

First Bank Pays a Forged Check on Donald's Account