Dru signs a check "pay to the order of Eppie" drawn on Dru's account in First State Bank. Greta forges Eppie's indorsement. First State pays the check. Most likely
A) Dru will be liable for the amount.
B) Eppie will have to pay Dru for the amount.
C) First State will have to recredit Dru's account.
D) the Federal Reserve will reimburse all parties for their costs.

Question

Quizplus · Accepted Answer

First State Bank is liable for paying on a forged indorsement and must recredit Dru's account as the bank is responsible for verifying the authenticity of endorsements.

Dru Signs a Check "Pay to the Order of Eppie