A bank that pays a customer's check bearing a forged indorsement is not obligated to recredit the customer's account.

Name: A bank that pays a customer's check bearing a forged indorsement is not obligated to recredit the customer's account.
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Question

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A bank is generally obligated to recredit a customer's account if it pays a check with a forged indorsement, as the payment is unauthorized and the bank is responsible for ensuring the validity of endorsements.

A Bank That Pays a Customer's Check Bearing a Forged