Bunge Corp. v. Manufacturers Hanover Trust Co.

The primary question is whether a bank which issues a cashier’s check at the request of a customer, Allied, to the order of a named payee and then allows the check to be returned by Allied for cancellation without the payee’s indorsement, accepts the risk of loss where the check was delivered to the payee and then stolen. Although the question is presented in novel circumstances, its resolution is dictated by the application of standard principles governing negotiable instruments. There are subsidi*232arv, albeit significant, questions (factual in nature) whether the payee, Bunge, authorized…