Under the Fictitious Payee Rule, the Payee's Indorsement Is Not

question 36

True/False

Under the fictitious payee rule, the payee's indorsement is not treated as a forgery, and an innocent holder can hold the maker or drawer liable on the instrument.

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Definitions:

Developing Nations

Countries with a lower standard of living, underdeveloped industrial base, and low Human Development Index relative to other countries.

IACs

International Agreements on Commodities, aimed at stabilizing commodity prices and ensuring fair trade practices.

Temporary Workers

Temporary workers are employed on a short-term basis, often through a staffing agency, to fill temporary positions or during peak business periods.

DVCs

Developing Venture Capitalists; alternatively, if intended to reference countries, this term is not correctly expanded.