Jack Roberts indorsed his paycheck "For Deposit to My Account No.4976463 at National Bank." In the meantime,he loses the check and Mary Green finds it.If Green tries to cash the check at a check-cashing service and it gives her the money,what is the result?
A)Roberts does not have any legal remedies.
B)National Bank will be liable to Roberts for converting his check.
C)Green will be liable to Roberts for converting his check.
D)The check-cashing service will be liable to Roberts for converting his check.

Question

Quizplus · Accepted Answer

A depositary bank (a bank that takes an item for collection)or payor bank (the drawee bank)that takes an instrument for deposit or for immediate payment over the counter that has been indorsed "for deposit" or "for collection" will be liable for conversion unless the indorser received the amount paid for the instrument or the proceeds or the bank applied the amount consistently with the indorsement.

Jack Roberts Indorsed His Paycheck "For Deposit to My Account