Hopf was even allowed to store Husker materials in his garage. During Hopf's twenty years of employment, Husker never asked to inspect Hopf's checking account. Finally, Husker ignored valid customer complaints indicating Hopf was manipulating the records of Husker's credits with its customers. On our de novo review we find these matters clearly amounted to negligence on Husker's part which substantially contributed to Hopf's false signatures on the checks. The banks also established they acted in good faith and in accordance with reasonable business procedures.
Good faith is honesty in fact.
Iowa Code Sec. Checks were presented and accepted in the customary way. Indeed, Husker makes no serious contention that the banks did not act in good faith. The banks also established that they acted in accordance with reasonable business procedures. The checks, when presented, were examined for an endorsement which was compared with the named payee on the front of the check.