An indorser who receives consideration for an instrument is required to provide a warranty that she has no knowledge of the bankruptcy of the maker, acceptor, or drawer.

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An indorser who receives consideration for an instrument makes five warranties to subsequent transferees of the instrument. The fifth warranty provides that the indorser has no knowledge of the bankruptcy of the maker, acceptor, or drawer.

An Indorser Who Receives Consideration for an Instrument Is Required