Silas deposits his paycheck in First American Bank without indorsing it. First American cannot become a holder until Silas completes the indorsement.

Question

Quizplus · Accepted Answer

First American Bank can become a holder even without Silas indorsing the check. This is because the check is still payable to Silas and First American is a bank that Silas has a relationship with, so they have the authority to deposit the check into his account without an indorsement.

Silas Deposits His Paycheck in First American Bank Without Indorsing