Discuss the banks position in the situation below and state what actions you will

take:

a)

i. B.A Samuelson had maintained an account with you for 3 years. He has been a satisfactory customer, but in recent months his account has been overdrawn. You have written on three occasions recently requesting repayment. He works as a claims manager

for a popular insurance company whose account you do not hold. The insurance company was claiming from your bank refund of the value of a cheque for GH1,250,000.

The cheque which was made out in the name of A. Samuel and crossed "not negotiable"

was fraudulently altered by Mr. Samuelson after it has been signed. No enquiry was

made of B.A Samuelson when he lodged in this cheque for collection.