BLS 442 Lecture Notes - Lecture 11: Situation Two
4 Mar 2015
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Hdc acting in good faith is not a good defense b/c theory of recovery is. Pw #2: no knowledge that the signature is not genuine or unauthorized (forged signature) Hdcaigf is a good defense b/c not versus a drawee bank or pw #1. Hdcaigf is a good defense here as well. 14 day rule: the drawer must notify the drawee bank of forgeries within 14 days after receiving his/her cancelled checks. After 14 days, the drawer is liable for all subsequent forgeries by the same forger. 14 days and earlier, the drawer has one year to report a forged drawer"s signature. Drawer"s negligence: any real defense converted to personal defense. 2/2: forged check discovered (14 day rule, has until 2/16 to report) Between 2/2 and 2/16: multiple small checks. Not liable for checks between 2/2 and 2/16, but liable for checks after b/c did not notify.
