Exam 2 Numbers Flashcards
How long after death is the bank still allowed to pay checks?
10 days AFTER death
How long are oral stop payments good for?
14 days
How long are written stop payments good for?
6 months
When is a customer required to find and report forgery of drawer’s signature?
Within 30 days of receiving the statement
Statute of limitations for drawer forgery?
1 year
Statute of limitations for indorser forgery?
3 years
Midnight deadline (def and time period)
Midnight deadline is the amount of time a bank has before it must send off a check to the next part of the process
It is due by midnight of the next banking day.
ex. Check deposited on Monday at 12pm, due by Tuesday at midnight.
On-Us Check Collection availablity
Need to know before the morning of the next banking day
Cash, on-us check, electronic money, direct deposits, cashier/certified checks time?
By the morning of the next banking day
Ex. Monday at noon, money is available by tuesday morning
Bank owns ATM
allowed to add one day
Bank does NOT own ATM
can hold up to 5th business day after deposit
New account timing?
Up to the 9th business day after deposit
Greater than $5,000 timing?
Up to the 7th business day after
NSF timing?
Up to the 7th business day after
EFT timing to report
60 days after statement has been received
10 days to investigate
45 days additional if needed, but money must be credited
1 day to fix once found
If nothing found then need a full written report detailing what they did find
Notice of dishonor bank to bank
Midnight of the next banking day
Everyone else dishonor notice
within 30 days of learning about dishonor
How long does secondary liability last as an indorser?
30 days. After that, it is not enforceable on them.
