When a Bank Pays a Check That Has Been Materially

question 102

Multiple Choice

When a bank pays a check that has been materially altered to a higher amount,assuming the bank is given appropriate notice when the drawer discovers the alteration,the bank:

• A) cannot charge the depositor's account.
• B) can charge the depositor's account for the original amount of the check, but cannot recover the additional amount from anyone.
• C) can charge the depositor's account for the original amount of the check, and recover the additional amount only from the person who altered the check.
• D) can charge the depositor's account for the original amount of the check, and recover the additional amount from the person who presented the check for payment, even if that person did not know the check was altered.
• E) can charge the depositor's account for the original amount of the check, and recover the additional amount from the person who presented the check for payment, but only if that person knew that the check was altered.