An unqualified indorser who receives consideration for the indorsement impliedly warrants all of the following except:
A) the warrantor is a person entitled to enforce the instrument.
B) all signatures on the instrument are authentic and authorized.
C) the instrument has not been altered.
D) the drawer has sufficient funds to cover the check.

Question

Quizplus · Accepted Answer

An unqualified indorser who receives consideration for the indorsement implies a warranty of the first three listed options, but not the fourth option. The drawer's ability to cover the check is not guaranteed by the indorser's endorsement.

An Unqualified Indorser Who Receives Consideration for the Indorsement Impliedly