Diligence Required of Banks

This topic has no further subtopics. Explore its practice questions below.

1. What feature of banking supports its heightened diligence standard?
2. How must banks treat depositors’ accounts under the doctrine reiterated in Equitable PCI Bank v. Tan?
3. Does a bank’s high diligence duty depend solely on the customer having a large balance?
4. A bank prematurely debits a clearly postdated check and thereby dishonors other funded checks. It claims ordinary offic…
5. A bank says the high-care doctrine could not apply to its conduct in 1992 because RA 8791 was enacted only in 2000. Whi…
6. A depositor proves a negligent debit that caused wrongful dishonor. He then demands every projected business loss witho…
7. A bank proves that it had a written verification policy but its staff ignored an obvious material date in the transacti…
8. Explain why banks owe a heightened standard of care in dealing with depositors’ accounts.
9. Apply the bank diligence standard to an erroneous premature debit of a postdated check that causes wrongful dishonor of…
10. Does the existence of a detailed internal manual conclusively establish the required bank diligence? Explain.
11. In Areza, did a finding of negligent bank handling automatically establish fraudulent or bad-faith conduct for moral da…
12. Under Areza’s application of Article 1170, can negligent delay in performing the bank’s obligation support damages?