At 04:43 AM 7/25/94 -0500, Jim Hart wrote:
Isn't this kind of like writing them a blank check? If I tell them to make the check out for $20 and they make it out for $100, how do I repudiate that? Not only that, how do I prevent them from writing and cashing more checks by increasing the sequence number?
Nothing. Just like I can obtain your check info (by getting you to write me a check) and forging a physical check using DTP technology (Forbes cover story of several years ago). You can disavow the check though and demand a credit from your bank. If you don't complain, the transfer stands. If you do, you get your money back. I don't think they ever passed the Uniform Commercial Code proposal that would have made checks just like electronic payments where you are liable for $50 if you don't make a timely report of the problem. Traditionally, you *never* had to challange a check and you could get all of your money back if the bank paid a check on a "forged drawer's signature." DCF