John Doe had a checking account at Highland National Bank in New York. Two days after John Doe…

John Doe had a checking account at Highland National Bank in New York. Two days after John Doe died in Florida, but before Highland National knew of his death, John’s sister appeared at the bank. She had a check signed by John Doe but with the amount and name of the payee left blank. She told the bank that her brother wanted to close his account. She asked how much was in the account, filled the check in for that amount, and made the check payable to herself. The bank checked her identification and verified the signature of John Doe. Then it paid the check to the sister. The executor of John Doe’s estate sued Highland National Bank to recover the amount of money that was in John’s account on the day he died. The executor claimed that the bank had no authority to pay checks from John Doe’s account after his death. May a bank pay checks drawn on the account of a deceased customer?

 

 

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