1. Merri and Gary Brecher were president, vice president, and the sole owners of Contractors Source, Inc. (Source). Source opened a bank account with Amegy Bank National Association (Amegy) on which Merri and Gary were the only authorized signatories. Source hired Maria Straten, aka Maria Henry, as bookkeeper, and shortly thereafter Straten began using money from the Amegy account to pay her personal creditors. For the most part this was accomplished by providing the Amegy routing and checking account numbers to third-party websites, and continued for a period of about two years. Ultimately Straten forged Merri Brecher's name on two checks. Merri discovered the check forgeries upon examination of the monthly bank statement and notied Amegy within thirty days of receiving the monthly statement. Amegy refused to credit Source's account on the basis that the rst misappropriation (via electronic transfer to a third-party website) had occurred more than one year ago. Was Amegy responsible to Source for the amount of the two forged checks?
2. Gaby Gonzalez obtained two CDs at Second Federal Savings and Loan Association (Second) with her daughter, Juana Martinez, as beneciary. Right before Gonzalez died, she told her cousin, Rafael Gonzalez, where to nd her CDs. The CDs had a line through Martinez's name and Rafael Gonzalez's name added in the section for beneciary with the notation, "REVISED BENEFICIARY . . . RC." After Gaby's death, Rafael withdrew some funds to pay funeral expenses and legal fees from one of the CDs. Several years later, Rafael discovered that Second had paid the CDs to Hector Gonzalez, who was the administrator of Martinez's estate. Rafael sued Second, claiming as the beneciary that it should have paid him. Who was entitled to the proceeds of the CDs?