A Depositor Issued a Check And, After Mailing the Check

question 28

Multiple Choice

A depositor issued a check and, after mailing the check, suffered a heart attack and died. In the regular course of business, the bank paid the check when presented for payment, despite the fact that the bank had received notice fourteen (14) days earlier of the depositor's death. In terms of the bank's payment of the check

• A) the bank is liable if the check was a gift to charity.
• B) the bank is potentially liable to the depositor's estate.
• C) the bank is not liable unless the depositor's executor posted an indemnity bond.
• D) the bank's authority to act for the depositor ended on the depositor's death, regardless of whether the bank had been notified of the depositor's death.

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Definitions:

Continuous Tube Feedings

A method of providing nutrition through a tube placed in the stomach or intestines, delivering food continuously over 24 hours.

Tube Position

The location or placement of a medical tube within the body, critical for the proper functioning of the tube.

Radiograph

An image produced on a sensitive plate or film by X-rays, gamma rays, or similar radiation, and used in medical diagnosis.

Pulmonary Aspiration

The inhalation of material (such as food, liquid, saliva, or vomit) from the oropharynx into the lungs, which can cause respiratory complications.