BLS 442 Lecture Notes - Lecture 12: Depository Bank, Fiduciary, Bankers' Acceptance
4 Mar 2015
School
Department
Course
Professor
Document Summary
Acceptor v. h3: time draft; theory of recovery: pw; h3 defense: hdc acting in good faith; Acceptor loses if h3 has this defense, acceptor is not a drawee bank, and not pw #1. M p h1 h2 h3 h4. Voidable contracts, cross out indorsement means no 2l, transfer warranties extend only to next person. Can cancel indorsement until it gets to a hdc, then cannot cancel indorsement. If transferor is a minor, transferee cannot be a hdc. Has to have indorsement for transferee to have title. If no indorsement and transferor refuses, can get a court order to force an indorsement. One exception: take check to a depositary bank, can supply indorsement for you if you forget. Drawer is the creditor, their money is in bank. In this case, exception to this, agency relationship still exists; bank has 10 days to accept checks on behalf of deceased. Executor can put stop payment order on checks.
