Question

QUESTION 40 When a customer deposits a check into her checking account, her bank is called the depository and collecting bank. True False

QUESTION 41 A violation of the provisions of the EFTA will subject the bank to punitive damages, attorney fees & costs. True False

QUESTION 42 Generally, a stale check is one over 6 months old. True False

Answer 1

40. True

Once a customer deposits a check into a checking account, the bank would be responsible as a depository for custody and safe keeping of the check, and also for ultimately collecting the check.

41. True.

Violation of the Electronic Funds Transfer Act would entitle the plaintiff to recover punitive damages, attorney fees and costs from the bank.

42. True.

Stale check is a check that is presented to be cashed or deposited at a bank six months or more after the date it was written.