If a drawee bank pays an instrument containing a forged indorsement,the bank is liable for conversion.

Name: If a drawee bank pays an instrument containing a forged indorsement,the bank is liable for conversion.
Brand: Quizplus
Rating: 5.0 (49 reviews)

Question

Quizplus · Accepted Answer

According to the Uniform Commercial Code, if a bank pays a check that contains a forged endorsement, it is considered to have converted the instrument and is therefore liable for any resulting losses.

If a Drawee Bank Pays an Instrument Containing a Forged