A Bank Will Not Be Liable for Payment of a Check

question 51

Multiple Choice

A bank will not be liable for payment of a check on which the drawer's signature has been forged if:

• A) the bank could not have detected the forgery through a reasonable investigation.
• B) there are more than two prior indorsers of the check.
• C) the bank gives a cashier's check in payment of the depositor's check.
• D) the drawer's negligence contributed substantially to the forging of the signature.

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