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:

Incentive Pay

Additional compensation awarded to employees for achieving specified goals or exemplary performance.

Performance Measures

Quantitative and qualitative indicators used to assess how well an individual, organization, or system is performing, often against predefined targets or standards.

Previous Year's Profits

The net earnings of an organization in the financial year immediately preceding the current one.

Gainsharing Plan

A performance-based compensation strategy that allows employees to share in the company's savings or gains, often from productivity improvements.