John wants to buy a boat but does not have the money to pay for the boat in full. As a result, John signs a promissory note with Float Boating Company for purchase of the boat. John signs an agreement allowing Float to draw payments on his account at USAA Bank. The boat serves as collateral for the promissory note. After seven of thirty-six payments, Float inexplicably repossesses the boat, and maintains possession of it. USAA Bank is informed of this fact by John who issues a stop payment order on the payments to Float. USAA Bank makes a mistake and allows the next payment to go through. Upon receiving his bank statement, John inquires of USAA Bank. USAA Bank contacts Float who refuses to refund the additional payment. As a result of the over-payment, John suffers an overdraft on his account.

Will John be able to get the money from the errant payment back from USAA Bank? Explain. Would USAA be liable for the Overdraft created by the payment?

Does the Electronic Fund Transfer act apply to the transfer of money between USAA Bank and Float. Explain