Asked by Dylan Gauthier on Jul 21, 2024
Verified
According to Revised Article 3 if a bank pays a check that contains a forged indorsement:
A) the bank has converted the check by wrongfully paying it.
B) the person whose indorsement was forged has converted the check.
C) the person whose indorsement was forged is liable to the bank.
D) the forger is liable to the person whose indorsement was forged.
Forged Indorsement
occurs when someone unlawfully signs another person's name on a financial document, such as a check, without authorization.
Revised Article 3
Amendments and updates to Article 3 of the Uniform Commercial Code (UCC), which primarily deals with negotiable instruments like checks.
- Acquire knowledge on the process and effects of tampering and counterfeiting in negotiable instruments.
Verified Answer
JC
Jordan CurtisJul 24, 2024
Final Answer :
A
Explanation :
If a bank pays a check that contains a forged indorsement,the bank has converted the check by wrongfully paying it.The bank then becomes liable for the face amount of the check to the person whose indorsement was forged.
Learning Objectives
- Acquire knowledge on the process and effects of tampering and counterfeiting in negotiable instruments.