Devon draws a check payable to the order of Jen on his account at Big Bank.Jen properly negotiates the check to Seth,who sells the check to Andy.Seth indorsed without recourse.Andy deposits the check in his bank account at Mega Bank without indorsing the check.Who has liability to Mega Bank?

Question

Quizplus · Accepted Answer

In the above case,Jen has liability to Mega Bank.Indorsers are liable to each other in the chronological order in which they indorse,from the last indorser back to the first.The indorser can avoid liability only by qualifying the indorsement,such as writing "without recourse," on the instrument when he indorses it.

Devon Draws a Check Payable to the Order of Jen