State Security Check Cashing, Inc. v. American General Financial Services

HARRELL, Judge.

In this case we are asked to determine which party, as between the issuer of a check and the check cashing business that cashed it, is liable under Md.Code, Commercial Law Art. § 3-404 (2002 Repl. Yol. & Supp. 2008) for the face amount of the check, when an imposter, posing successfully as another individual in securing a loan (the proceeds of which were represented by the check) from the issuer, subsequently negotiated the check at the check cashing business. We shall hold that, under the circumstances presented in this case, the issuer of the check is liable for the amount of…