If a Person Paying an Instrument Subject to the Impostor

question 61

True/False

If a person paying an instrument subject to the impostor rule fails to exercise ordinary care, the issuer may recover from the payor to the extent the payor's negligence contributed to the loss.

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Definitions:

Timely Payments

Payments made within the agreed upon time frame as outlined in a contract or agreement.

Loans

A financial arrangement in which money is borrowed for a certain period of time, typically with interest.

Sampling Distribution

The probability distribution of a given statistic based on a random sample.

Histogram

A graphical representation of the distribution of numerical data, where the data is grouped into ranges (bins) and depicted as bars.