Which warranties does a collecting bank give?

Question

Quizplus · Accepted Answer

C is correct because a collecting bank, when presenting an item for payment, warrants that it is entitled to enforce the item, the signatures are genuine, there has been no material alteration, there are no defenses good against it, and it has no knowledge of any insolvency proceedings against the maker, acceptor, or drawer of an unaccepted draft. These warranties are designed to protect the payor bank and subsequent holders of the item.

Which Warranties Does a Collecting Bank Give