Transfer of a note "payable to the order of Credit Company" by delivery to Debit Associates, with the payee's indorsement, for consideration, extends warranty liability

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When a note is transferred with the payee's indorsement for consideration, the indorser extends warranty liability to any subsequent holder who takes the instrument in good faith, according to the Uniform Commercial Code. This includes warranties that the indorser is entitled to enforce the instrument, there are no alterations, and no defenses of any party are good against the indorser.

Transfer of a Note "Payable to the Order of Credit