Royal Arcanum Hospital Association of Kings County, Inc., required all of its corporate checks to be signed by two of three corporate officers. These officers were Frank Vassallo, Joseph Rugilio, and William Herrnkind. The three were also named as sig-natories on the firm's account with Capital One Bank, but the terms of the account did not include the two-signature requirement. After Vassallo and Rugilio died, Herrnkind opened a new account in the corporate name that expressly permitted checks to be drawn on it with only his signature. Over the next four years, a series of transactions reduced the balance of the account from nearly $200,000 to zero. Royal Arcanum sued Herrnkind and Capital One in a New York state court to recover the funds. The court dismissed the complaint against Capital One, and Royal Arcanum appealed. A state intermediate appellate court affirmed. Capital One was not liable for the payment of unauthorized withdrawals on the firm's corporate accounts because the contract terms never included a two-signature requirement for the transactions.

Note: Can you please answer this question using IRAC( Issue, Rule of Law, Analysis, and Conclusion) format. Because then it will be easy for me to understand the case a a lot better.

Reference: Business Law Today Essentials Miller 12th edition. Title: Law and Ethics in Technology and Innovation.