Clyde issues a check payable to Discount Mart.Elle,Discount's cashier,forges the store's indorsement and deposits the check in her bank ac-count.Clyde's bank,Main Street Bank,pays the check.Clyde can recover from
A)Elle,but not Main Street Bank.
B)Main Street Bank,which cannot recover from Elle.
C)Main Street Bank,which can recover from Elle.
D)no one.

Question

Quizplus · Accepted Answer

Clyde can recover from Main Street Bank because the bank paid on a forged indorsement, which is unauthorized. Main Street Bank can then seek recovery from Elle, who committed the forgery.

Clyde Issues a Check Payable to Discount Mart