Question

Doug Drawer makes out a check for $9 to Phil Payee. Phil cleverly alters the number 9 to 90 and the written nine to ninety and then cashes the check at a local convenience store. Must Doug (or Doug’s bank) pay $90 to the store? Under the BEA or UCC? Under the ULB?

Answer 1

Solution:-

Doug Drawer makes out a check for $9 to Phil Payee. Phil cleverly alters the number 9 to 90 and the written nine to ninety and then cashes the check at a local convenience store. Must Doug (or Doug’s bank) pay $90 to the store? Under the BEA or UCC? Under the ULB:-

If number “0” put behind number “9” looks real and regular then the bank has to pay. Some checks have amount in word as well so this is more difficult as collecting banks will base on amount in words. The rules of drawing a check is the issuer should cross out the remaining space if there is still space after the last number. In this context, the issuer still left some blank space so Phil can fill additional number in. This should be decided based on ULB.

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