Which of the following is true of warranties of indorsers?
A) The indorser is not entitled to enforce the instrument.
B) The indorser warrants that the instrument is subject to a defense of any party that can be asserted against the indorser.
C) The indorser warrants that he/she has knowledge of the bankruptcy of the maker, acceptor, or drawer.
D) The indorser warrants that there has been no alteration or other irregularity.

Question

Quizplus · Accepted Answer

The correct option is D, as the warranties of indorsers include a warranty that there has been no alteration or other irregularity in the instrument. Option A is incorrect because an indorser can enforce the instrument. Option B is incorrect because an indorser warrants that the instrument is genuine, not subject to defenses. Option C is incorrect because an indorser is not required to have knowledge of the financial condition of the maker, acceptor, or drawer.

Which of the Following Is True of Warranties of Indorsers