If an employee with responsibility for issuing instruments forges a check or other instrument,then any indorsement in the name of the payee,or a similar name,is valid as long as the person who pays the instrument doesn't know of the fraud.
A)the Imposter Rule
B)the Conversion Rule
C)the Employee Indorsement Rule
D)the Fictitious Payee Rule

Question

Quizplus · Accepted Answer

The Employee Indorsement Rule states that if an employee responsible for issuing instruments forges a check, any indorsement in the name of the payee is valid if the payer is unaware of the fraud.

If an Employee with Responsibility for Issuing Instruments Forges a Check