In the Case of a Check, When the Impostor Rule

question 26

Multiple Choice

In the case of a check, when the impostor rule applies:

• A) the drawer of the check can successfully raise the defense of the forged indorsement.
• B) the forged indorsement is effective to negotiate the instrument.
• C) the forged indorsement is ineffective to negotiate the instrument.
• D) the instrument becomes nonnegotiable.