Where the impostor has impersonated a person authorized to act for a payee:
A)the responsibility for determining the true identity of the payee is on the bank.
B)the impostor has the power to negotiate a check drawn payable to the payee.
C)the later holder does not have good title to the check as the payee's signature is not valid.
D)the loss is shared by the maker and the bank that negotiated the forged instrument.

Question

Quizplus · Accepted Answer

Where the impostor has impersonated a person authorized to act for a payee,such as claiming to be Jack Jones,the president of Jones Enterprises,the impostor has the power to negotiate a check drawn payable to Jones Enterprises.

Where the Impostor Has Impersonated a Person Authorized to Act