Circle Food Store, Inc. v. National American Bank of New Orleans

Under La.R.S. 7:62 (N.I.L. § 62), a bank which pays (or merely accepts) a check drawn upon itself “admits . . . the genuineness of [the drawer’s] signature . The bank cannot recover from a forwarding bank, Security State Bk. & Tr. Co. v. First Nat. Bank, La.App. 2 Cir. 1941, 199 So. 472 (or from any one except for breach of the warranty of N.I.L. § 65(4) or U.C.C. § 3-417(l)(b)).

La.R.S. 6:67, the charge-back provision, provides an exception to the rule of R.S. 7:62. But unless a bank shows that it has charged back an item payable through itself by midnight of the business day following the…