Clarice Rich was employed by the New York City Board of Education as a clerk. It was her duty to prepare requisitions for checks to be issued by the board, to prepare the checks, to have them signed by authorized personnel, and to send the checks to the recipients. In some instances, however, she kept the checks. Also, on a number of occasions Clarice prepared duplicate requisitions and checks, which she kept after she had the board sign. She then forged the indorsement of the named payees on the checks and cashed them at Chemical Bank, where the Board of Education maintained its account. After the board discovered the forgeries, it demanded that Chemical Bank credit its account for the amount of the forged checks. Answer the following questions in the space provided below: 1. Is Chemical Bank required to credit the Board of Education\'s account as requested? 2. Explain how you reached your conclusion and the legal principles which you relied upon. Solution 1)Clarice Rich is looking into matter of preparing a requsition , cheque ,getting sign on the same etc.What information availeble in case is , she was keeoing a cheque at her place & issuing a different & cashed .So now as per law If she is producing the Cheques from authorized cheuqe books & signs are matching then in that case Chemical Bank will not be responsible for credit to board of education. 2)Conclusion : Few things needs to focus a)There should be a transparant t system of Cheque preapration. b)Clarice Rich has to prepare proper documentation of cheque & submit daily to accounts dpt. c)As per rule Banks can not give or clear cheque in cash of major amount. d)E banking & SMS facility can help to see how the cheque trasancations takes place .What are the various parties to whom we have issued a cheque ..