Commercial Paper – Liability Diagrams

Daicoff - Spring, 2000

Straight Chapter 11 Liability (partial; this isn’t all of Ch.11)

Drawer issuance Payee Depositary Bank

Chargeback 4-214

transfers

4-401 not 3-418c defense

properly payable Intermediary Banks

(must recredit C/L fraud 4-302(b)

account) 3-418 a&b mistake/restitution

 

Drawee presentment Collecting Bank

Payor Bank

(Liability: 3-413 acceptor’s liab; 4-302(a) accountable if miss m.d.)

(COA’s: 3-418 mistake/restitution; C/L Fraud 3-402(b))

 

 

 

 

Commercial Paper – Liability Diagram for Forged Indorsement

 

Drawer issuance Payee 3-420 conversion Depositary Bank

3-309 or 3-414(b) or underlying oblg’n if check delivered to P

Thief 4-207

 

4-207 breach of transfer

3-420 conversion warranties

transfers

4-401 not

properly payable Intermediary Banks

(must recredit

account)

4-207 breach of transfer

warranties

Drawee 4-208 presentment warranty Collecting Bank

Payor Bank

(Liability: 3-413 acceptor’s liab; 4-302(a) accountable if miss m.d.)

(COA’s: 4-208 presentment W; C/L Fraud 3-402(b))

 

 

 

 

 

 

Commercial Paper – Liability Diagram for Forged Drawer's Signature

 

(to come….)