Clyde issues a check payable to Discount Mart.Elle,Discount's cashier,forges the store's indorsement and deposits the check in her bank ac?count.Clyde's bank,Fab Bank,pays the check.Clyde can recover from
A)Elle,but not the bank.
B)the bank,which cannot recover from Elle.
C)the bank,which can recover from Elle.
D)no one.

Question

Quizplus · Accepted Answer

Clyde can recover from the bank because the bank paid on a forged endorsement, which is unauthorized. The bank can then seek recovery from Elle, who committed the forgery.

Clyde Issues a Check Payable to Discount Mart