Depository Bank Not Liable When Checks Were Deposited Into The Account Of A Related But Different Legal Entity
Question: If checks payable to one entity are presented and negotiated by a related but different legal entity, is the depository bank liable under the California Commercial Code or common law?
Answer: No, according to the Fourth District Court of Appeal in Mills v. U.S. Bank (D049805), decided September 10, 2008.
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