A holder in due course who suffers a loss arising from a forged endorsement can recover from the party who acquired the instrument immediately following the forgery.

Question

Quizplus · Accepted Answer

A holder in due course is protected under the Uniform Commercial Code (UCC) and can recover losses from the party who acquired the instrument immediately following the forgery because that party warranted the authenticity of the endorsement when they transferred the instrument.

A Holder in Due Course Who Suffers a Loss Arising