A Forged or Unauthorized Endorsement Is by Definition

question 53

Multiple Choice

A forged or unauthorized endorsement is by definition:

• A) an endorsement of the person by whom it appears to have been made.
• B) no endorsement of the person by whom it appears to have been made.
• C) binding on the party who refuses to ratify the instrument.
• D) incapable of being ratified.

---

Definitions:

Cosigner

An individual who agrees to be equally responsible for the repayment of a loan if the primary borrower fails to pay.

Voluntary Agreement

A consensual arrangement between parties, often formalized through a contract, without coercion or duress.

Bankruptcy

A judicial process concerning an individual or business that is incapable of paying off its accumulated debts.

Debts Reduced

A situation where the total amount owed by an individual or entity is decreased through negotiation, settlement, or by making payments.