If the Drawee Bank Mistakenly Paid a Check with a Forged

question 31

Multiple Choice

If the drawee bank mistakenly paid a check with a forged or unauthorized drawer's signature on it:

• A)the bank can recover the amount from the person whose name had been mentioned in the check albeit without authorization.
• B)the bank can recover if it paid the check to a presenter who had taken the instrument in good faith and for value.
• C)the bank cannot recover if it paid the check to a forger or unauthorized signer.
• D)the bank cannot recover it if the presenter had taken the instrument in good faith and for value.

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Definitions:

Psychotic Disorder

A mental disorder characterized by a disconnection from reality, manifesting in symptoms such as hallucinations or delusions.

Memory Problems

Difficulties in recalling past events, learning and retaining new information, or both, which can significantly impact daily functioning.

Mental Health

The state of one's psychological and emotional well-being.

Unintentional Misuse

The incorrect use of a product or substance without the intention of causing harm, often due to a lack of knowledge or understanding.