Banks

Question 1

Under Revised Article 3 of UCC postdating a check does not destroy negotiability but

Answer 1

makes the check properly payable on or after the date written on the check

Question 2

If a bank pays a postdated check earlier

Answer 2

It is not liable unless the drawer had notified the bank that the check was postdated

Question 3

If the bank fails to follow a stop payment order

Answer 3

It is liable to the customer only if customer had

1) Valid defense
2) suffered a loss

Question 4

Oral stop on stop payment orders

Answer 4

are valid for 14 days