Asked by Charles Johnson on May 07, 2024

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Which of the following is a warranty of the transferor?

A) Transferor has no knowledge of any insolvency proceedings with respect to the maker, acceptor, or drawer of an unaccepted instrument.
B) Transferor warrants that all signatures are authentic and authorized.
C) Transferor warrants that he is entitled to enforce the instrument.
D) All of these are warranties of the transferor.

Insolvency Proceedings

Legal procedures undertaken when an individual or company is unable to meet its financial debts, aiming to distribute the debtor's assets among creditors and relieve the debtor of further liability.

Authentic Signatures

Legitimate, original, and verified signatures of individuals on a document, indicating consent or agreement.

Enforce the Instrument

The act of legally compelling compliance with the terms outlined in a formal legal document, such as a contract or will.

  • Acknowledge the protections ensured by the transferor of a negotiable instrument.
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Verified Answer

LB
Laura BowersMay 08, 2024
Final Answer :
D
Explanation :
All of the options listed are indeed warranties of the transferor. These warranties are made to the transferee (and in some cases, to subsequent transferees) when an instrument is transferred. They are designed to protect the transferee by ensuring the legitimacy and enforceability of the instrument.