Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250, and then forges Sarah's signature.He then presents the check to First Bank for payment.First Bank pays the forged instrument.Which of the following statements is correct? A)First Bank will have to recredit the $250 to Sarah's account, but they can collect from Orrin if they can find him and he has the money. B)First Bank will have to recredit the $250 to Sarah's account, but only if they can collect the $250 from Orrin.. C)Sarah is primarily liable on the check even if she did not sign it and was not negligent in allowing Orrin to take ^th^e^blan^k^check. D)None of these.

Question

Quizplus · Accepted Answer

First Bank is generally liable for paying a forged check and must recredit Sarah's account. They can pursue Orrin for reimbursement if possible.

Sarah Has a Checking Account at First Bank