If a bank pays a check after it received a stop-payment order and had to reimburse its customer for the improperly paid check,what recourse does a bank have?
A)The bank can collect from its insurance company.
B)The bank has no recourse and,as a result,suffers a loss.
C)The bank can force its customer to sue the person to whom it paid.
D)The bank can sue the person to whom it originally made payment.

Question

Quizplus · Accepted Answer

If a bank pays a check after it has received a stop-payment order and has to reimburse its customer for the improperly paid check,it acquires all the rights of its customer against the person to whom it originally made payment,including rights arising from the transaction on which the check was based.

If a Bank Pays a Check After It Received a Stop-Payment