BPI Family Bank v Buenaventura; G.R. No. 148196; 30 Sep 2005; 471 SCRA 431
FACTS: Fund transfers effected on the basis of an Authority of Debit bearing forged signatures of certain officers of First Metro Investment Corporation (FMIC), transferring money from FMIC’s account to the current account of Tevesteco Arrastre Stevedoring Co., Inc. ISSUE(S): Whether or not BPI-FB was negligent and therefore should bear the loss caused by the fraud. HELD: NO. Every bank that issues checks for the use of its customers should know whether or not the drawer’s signature thereon is genuine, whether there are sufficient funds in the drawers account to cover checks issued, and it should be able to detect…