Conversion of an Instrument Will Occur If

question 67

Multiple Choice

Conversion of an instrument will occur if:

• A) a bank takes a check from another bank.
• B) a bank refuses to return a canceled check.
• C) a bank cashes a check with a forged indorsement.
• D) an indorser gives a check to the bank.

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Definitions:

Legal Status

The standing or condition of an entity or individual in the eyes of the law, including rights, responsibilities, and current legal state.

Negligently

Acting with a lack of due care or failing to take proper care in doing something, which can lead to harm or damage.

Material Alteration

A significant change to a document or contract that can affect its validity or alter its meaning and obligations.

Defense

The act of defending against a charge, accusation, or claim in legal proceedings or contexts.