A depositor issued a check and,after mailing the check,suffered a heart attack and died.In the regular course of business,the bank paid the check when presented for payment,despite the fact that the bank had received notice fourteen (14)days earlier of the depositor's death.In terms of the bank's payment of the check

Question

Quizplus · Accepted Answer

The bank had received notice of the depositor's death 14 days earlier, which should have triggered the suspension of the bank's authority to act for the depositor. The bank acted negligently by paying the check after receiving notice of the depositor's death, and is potentially liable to the depositor's estate for the payment made. The fact that the payment was made within 20 days of the notification of death does not justify the bank's unauthorized payment. The requirement of an indemnity bond is irrelevant in these circumstances.

A Depositor Issued a Check And,after Mailing the Check,suffered a Heart