According to the fictitious payee rule, when the instrument is issued in the name of a fictitious payee, the person purporting to be that payee can make an effective endorsement.

Question

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The fictitious payee rule states that when an instrument is issued in the name of a fictitious payee, whoever purports to be the named payee can make an effective endorsement. This rule applies even if the person making the endorsement is not actually the intended recipient of the funds.

According to the Fictitious Payee Rule, When the Instrument Is