Safeguard Your
Blank Checks
& Safeguard Your Account
Most
everyone who carries a checkbook
knows the panic that arises when the checkbook is misplaced.
Fortunately, checkbooks are usually found after a thorough
search, but concern is what happens
if someone unscrupulous finds the checkbook before you do and
forges your signature on those blank checks.
The law does address this situation in
the Minnesota Uniform Commercial Code. It
provides that a forged check is not "properly payable"
from the person’s checking account. If the bank pays the check
with the forged signature, it
would normally be required to credit the
account.
However, there is an exception to the rule. The law also
provides that "a person whose
failure to exercise ordinary care substantially contributes...to
making of a forged signature on an
instrument (check) is precluded from asserting the ...forgery
against a person (bank) who, in good faith, pays
the instrument..."
A recent court decision in New York illustrates this
exception. In the New York case, blank
checks belonging to a restaurant were
stolen, forged, and paid. The stolen checks had
been kept in an unlocked cabinet in a heavy-traffic area. The
checks were readily accessible to the restaurant
employees. One of the employees stole the
checks, made them payable to himself, and cashed them over a
forged signature on behalf of the
restaurant. The restaurant’s bank paid
the checks. When the discovery was made,
the restaurant demanded that
the bank credit its account based on the fact that the checks
were forged and were
therefore not "properly payable"
from its account.
The court, however, held that because
the restaurant kept the blank checks in
an area easily accessible by all the restaurant employees,
it "demonstrated negligence in safeguarding,
maintaining, and controlling its blank checks."
The court held in favor of the bank and the restaurant had to
absorb the loss.
The court confirmed that where you keep your blank checks is
important and that you should use reasonable care in keeping
them safe.
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The Step-Parent
"Adoption Option" Proves Useful For Some Families
Most
people are familiar with traditional adoptions in which a couple
adopts a child who is not their biological child. However, there are
other adoption options, such as step-parent adoptions. Each year our
firm handles several step-parentadoptions and we have found that
this can be a useful option for many families.
The typical step-parent adoption case involves a custodial parent
who has remarried and whose new spouse wishes to step into the role
of legal parent for their step-child. In most step-parent adoptions,
the other biological parent is not actively involved in the child’s
life and is either willing to consent to the adoption or is not
opposed to termination of their parental rights.
Adoption terminates a biological
parent’s rights and responsibilities to the child, including child
support. The adoptive
parent assumes the legal responsibilities and rights of a parent.
The child is then legally entitled to the benefits of the
parent-child relationship, which include right of inheritance,
social security andsupport.
The first step in a step-parent adoption is
usually to obtain the non-custodial parent’s consent to the
adoption. The custodial parent and the step-parent then file a
petition for adoption with the court. In a step-parent adoption, a
home study by the state may we waived by the Judge. After the
petition is filed, the court will schedule a hearing. Unlike most
court hearings, adoption hearings are closed to the public and the
file is confidential.
At the hearing, the Judge will review
the Petition and hear testimony from the custodial parent and
step-parent. The Judge
will then sign a Judgment and Decree of Adoption. The court also
files a report with the state and a new
birth certificate is issued to the parents.
The entire process usually takes a few months. If this is an
option that makes sense for you or a family member, contact our
office for further information
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