# **Legal Basis for Demand** **1. Breach of Contract** BMO failed to honor the **implied contract** to provide a functional account, violating fundamental contract law principles (Restatement (Second) of Contracts § 2). **2. Unjust Enrichment** BMO retained **$8,000** without legal justification, as no valid account existed for Empowering Change to access the funds (Cal. Civ. Code § 1606). **3. Uniform Commercial Code (UCC) Violations** - The $8,000 cashier’s check is **unenforceable** due to **failure of consideration** (UCC § 3-412). BMO must refund the amount in cash or a valid negotiable instrument. - BMO violated UCC § 4-401 by wrongfully dishonoring withdrawals after representing the account was active. **4. Federal Regulatory Violations** - **Unfair/Deceptive Acts (UDAAP)**: BMO’s misrepresentation about account accessibility violates the FTC Act (15 U.S.C. § 45) and constitutes an unfair practice under the Dodd-Frank Act (12 U.S.C. § 5536). - **Truth in Savings Act (TISA)**: BMO failed to disclose account restrictions or fees, violating 12 C.F.R. § 1030.4. - **IRS Compliance**: BMO obstructed the use of funds for Empowering Change’s 501(c)(3) mission, violating IRS rules requiring donated funds to be used exclusively for tax-exempt purposes (IRS Publication 526). **5. California State Law Violations** - **Unfair Competition Law (UCL)**: BMO’s conduct violates California Business & Professions Code § 17200 (unlawful, unfair, or fraudulent business acts). - **Charitable Trust Protections**: - California Probate Code § 15100 mandates the return of funds **to the donor** if charitable purposes fail. - California Attorney General guidelines prohibit third parties (like BMO) from interfering with charitable assets. - **Consumer Legal Remedies Act (CLRA)**: BMO’s deceptive practices violate California Civil Code § 1770(a) (misrepresenting services). **6. Negligent Misrepresentation** BMO employees’ assurances about account functionality, coupled with subsequent refusal to honor withdrawals, constitute negligent misrepresentation under California tort law (Restatement (Second) of Torts § 552). **7. Conversion** BMO’s retention of $8,000 constitutes **conversion** (unauthorized control over another’s property), entitling damages under California Civil Code § 3336. **8. Tortious Interference** BMO interfered with Empowering Change’s ability to fulfill its charitable mission, violating California Tort Claims § 766 (interference with economic relations). **9. Breach of Fiduciary Duty** BMO owed a duty of care to properly establish the account and safeguard funds. Its failure to do so breached fiduciary duties under California Probate Code § 16000. **10. Violation of Prudential Standards** BMO’s failure to conduct proper due diligence violates federal banking regulations (CFPB Supervision and Examination Manual, Ch. 2). **11. Electronic Fund Transfer Act (EFTA)** BMO’s issuance of a non-functional debit card violated EFTA requirements for honoring electronic transfers (15 U.S.C. § 1693 et seq.).