Properly Payable and Wrongful Dishonor | Negotiable Instruments

This lesson covers two important topic related to checks: properly payable and dishonor. Banks have a responsibility to pay their customers' checks but only when those checks are "properly payable," as defined by Article 4. If a check is indeed properly payable and the bank fails to pay it, the bank is liable to its customer for wrongful dishonor. We explore both topics in detail in this video. I hope you find it helpful. Chapter 00:00 - Introduction 00:31 - (1) Properly Payable 00:41 - (A) Reminder of how a check works 06:01 - (B) Drawee bank pays the check (and the consequences!) 07:48 - (C) What "properly payable" means 08:04 - Customer authorized payment 11:25 - Drawee bank paid the PETE 15:42 - Check not altered 19:32 - No stop payment order 23:27 - No effective post-dating 27:34 - No notice of customer's death or incompetence 29:15 - Deposit contract allows 31:11 - May pay even when NSF 34:48 - May pay stale checks 36:47 - Recap of properly payable 37:39 - (D) Bank May Use Subrogation When No Right of Reimbursement 39:39 - (2) Wrongful Dishonor 42:15 - (A) Most common reasons banks wrongfully dishonor checks 44:57 - (B) Consequential damages 46:23 - Conclusion/Outro