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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.
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.
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