Qato Forges Rush's Name as the Drawer of a Stolen

question 22

Multiple Choice

Qato forges Rush's name as the drawer of a stolen check, drawn on Scrutiny Bank, makes the item payable to Qato, and deposits it in his own Scrutiny account. In response to a call from the bank, Rush ratifies the signature. In this situation, Rush is liable to pay the amount to

• A)no one.
• B)ordinary holders only.
• C)ordinary holders, HDCs, and holders through HDCs.
• D)HDCs only.

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Definitions:

Uncertain Debt

A debt whose existence or amount is not clear or determined.

Composition Agreement

An arrangement where creditors agree to accept a partial payment from a debtor in full satisfaction of their claims.

UCC

The Uniform Commercial Code represents an all-encompassing series of legal directives that control all forms of commercial transactions within the U.S.

Contractual Duties

Obligations that parties are legally bound to perform as specified in a contract.