Fidelity & Deposit Co. of Maryland v. Manufacturers Hanover Trust Co.

Loretta Waite (“ Loretta ”) had a savings account at the Fourth Federal Savings and Loan Association of New York (“ Federal ”), where, on February 17, 1969, somebody appeared and presented a withdrawal order for $2,000. The signature on the order looked like the signature on Loretta’s account card. Federal honored the order. It drew a check on its bank, Manufacturers Hanover Trust Company (“Manufacturers ”), for $2,000, payable to Loretta’s order, debited Loretta’s savings atieount in the sum of $2,000, and delivered the check to the person presenting the withdrawal order. On the same day —…