Sarah Has a Checking Account at First Bank

question 55

Multiple Choice

Sarah has a checking account at First Bank.Orrin steals one of her blank checks, writes a check for $250, and then forges Sarah's signature.He then presents the check to First Bank for payment.First Bank pays the forged instrument.Which of the following statements is correct?

• A)First Bank will have to recredit the $250 to Sarah's account if she so requests.
• B)First Bank can collect the $250 from Orrin if they can find him and he has the money.
• C)Sarah is primarily liable on the check even if she did not sign it and was not negligent in allowing Orrin to take the blank check.
• D)Two of the above, (a) and (b), are correct.

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