The fictitious payee rule states that if an imposter forges the indorsement of the named payee,the drawer or maker is liable on the instrument to any person who,in good faith,pays the instrument or takes it for value or for collection.

Question

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The fictitious payee rule actually states that if an imposter induces the drawer to issue an instrument to a payee who does not exist or is not intended to have an interest in the instrument, the indorsement by any person in the name of the payee is effective as the indorsement of the payee.

The Fictitious Payee Rule States That If an Imposter Forges