Question

Path: P Words:0 QUESTION 17 John purchased some used items from Bob. John paid with a check made out to Cash in the amount of $100, John did not write the amount in the line provided on the check but simply put $100 in the numeral section of the check. Bob gave the check as partial payment to Marcia to whom he owed $500. Marcia altered the check so it read 51000. Marcia cashed the check. When John got his bank statement he saw the alteration and demanded the bank recredit his account for the increased amount of $900, the bank refused. DECIDE. TTTT Paragraph Arial 3 (120) BI X DO THESS

Answer 1

An altered check is a form of check fraud that includes an altered check in the form of malicious changes. Such changes that constitute an altered check include changes in the amount and payee name.

Under the UCC, the liability for an altered check can reside with the various parties involved, including the customer drawing the check, the bank on which the check is drawn, and the bank that presents the check, depending on the evident negligence.Ordinarily, a customer needs to examine their bank statement and report the loss within 30 days. Regardless of any negligence by the drawee bank, a customer will be barred from recovery if they do not report the loss within one year.

In this case the cheque was incompete also as the amount in words was not written by John.The bank can defend itself on account that the cheque was incomplete. If an incomplete instrument is altered by unauthorized completion, a payor bank paying it, or a person taking it for value, in good faith and without notice of the alteration, may enforce rights with respect to the instrument according to its terms as completed. So, the chances of John recovering the lost money from bank are very weak.The bank can refuse to pay the amount as it is not the fault of bank.