When a negotiable instrument is transferred,the transferor warrants all of the following EXCEPT
A)the instrument is bearer paper.
B)all signatures are authentic.
C)as far as she knows the issuer is solvent.
D)the instrument has not been altered.

Question

Quizplus · Accepted Answer

The transferor does not warrant that the instrument is bearer paper, as it may be transferred either as bearer or order paper. The transferor does warrant that all signatures are authentic, that the issuer is solvent to the best of their knowledge, and that the instrument has not been altered.

When a Negotiable Instrument Is Transferred,the Transferor Warrants All of the Following