Under the fictitious payee rule, an innocent holder can hold the maker or drawer liable on the instrument.

Name: Under the fictitious payee rule, an innocent holder can hold the maker or drawer liable on the instrument.
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Question

Under the fictitious payee rule, an innocent holder can hold the maker or drawer liable on the instrument.​

Quizplus · Accepted Answer

The fictitious payee rule allows an innocent holder to hold the maker or drawer liable on the instrument even if the payee named on the instrument is fictitious or non-existent. This rule protects innocent holders who may have unknowingly received a fraudulent instrument.

Under the Fictitious Payee Rule, an Innocent Holder Can Hold