Fact Pattern 25-1B

question 47

Multiple Choice

Fact Pattern 25-1B
First Bank's account agreement states that deposited items will be given pro?vi?sional credit only until collection is final, but the bank's practice is to extend immediate credit.
-Refer to Fact Pattern 25-1B. Suppose First Bank has no rea?son to suspect there would be a problem if immediate credit is extended on an item on which, in fact, there is an outstanding stop-payment order. According to the court's decision in Case 25.3, Mid Wisconsin Bank v. Forsgard Trading, Inc., with respect to this item, First Bank would be

• A) a holder, but not an HDC.
• B) an HDC.
• C) an HDC as against all parties except the item's depositor.
• D) an HDC as against all parties except the item's drawer.

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Definitions:

Service Department

An organizational unit that provides support services to other parts of an organization, rather than directly contributing to revenue generation.

Pediatrics Department

A specialized medical department dedicated to the care, diagnosis, and treatment of infants, children, and adolescents.

Employee Hours

The total number of hours worked by employees during a specific period, commonly used for payroll, scheduling, and productivity analysis.

Square Feet

A unit of area in the imperial measurement system, commonly used in real estate, architecture, and interior space planning.