If a Bank Pays a Check After It Received a Stop-Payment

question 46

Multiple Choice

If a bank pays a check after it received a stop-payment order and had to reimburse its customer for the improperly paid check,what recourse does a bank have?

• A)The bank can collect from its insurance company.
• B)The bank has no recourse and,as a result,suffers a loss.
• C)The bank can force its customer to sue the person to whom it paid.
• D)The bank can sue the person to whom it originally made payment.

---

Definitions:

Notochord

A flexible rod made out of a material similar to cartilage that provides support in all embryonic and some adult chordate animals.

Coelom

A fluid-filled body cavity lined with mesoderm that separates the digestive tract from the outer body wall in certain multicellular organisms.

Gastrodermis

The inner lining of the digestive cavity in cnidarians and some other invertebrate animals.

Epidermis

In mammals, the outer, protective layer of the skin; in plants, tissue that covers roots, leaves, and stems of nonwoody organisms.