Review case related to the forged indorsement

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Question: Forged Indorsement. Visiting Nurses Association of Telfair County, Inc. (VNA), maintained a checking account at Security State Bank in Valdosta, Georgia. Wanda Williamson, a VNA clerk, was responsible for making VNA bank deposits, but she was not a signatory on the association's account. Over a four-year period, Williamson embezzled more than $250,000 from VNA by forging its indorsement on checks, cashing them at the bank, and keeping a portion of the proceeds. Williamson was arrested, convicted, sentenced to a prison term, and ordered to pay restitution. VNA filed a suit in a Georgia state court against the bank, alleging, among other things, negligence. The bank filed a motion for summary judgment on the ground that VNA was precluded by Section 4-406(f) of the Uniform Commercial Code from recovering on checks with forged indorsements. Should the court grant the motion? Explain. [Security State Bank v. Visiting Nurses Association of Telfair County, Inc., 568 S.E.2d 491 (Ga.App. 2002)]

Reference no: EM131660199

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