Luther writes a check to Grant on his account at Primary Bank on June 1.Three days later,Luther dies from a massive heart attack.Primary Bank is not notified of the death until June 7.On June 8,having heard nothing from Luther's relatives,Primary Bank pays the check when Grant presents the check for payment.Primary Bank is liable for the check and must recredit the account.

Question

Quizplus · Accepted Answer

Primary Bank is not liable for the check as they were not informed of Luther's death before paying the check. However, they should freeze the account and wait for instructions from Luther's executor or administrator.

Luther Writes a Check to Grant on His Account at Primary