Nero signs a check "pay to the order of Olive" drawn on Nero's account in Peachtree Bank.Olive signs the back of the check.Secondary liability on this check extends to

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Secondary liability means that if the person who originally wrote and signed the check (the drawer) cannot pay, then the responsibility falls on another party to pay or make good on the check. Since Olive signed the back of the check, she becomes the endorser who might be held liable if Nero cannot pay. However, Nero remains primarily liable as the drawer. Peachtree Bank, as the bank on which the check is drawn, does not assume secondary liability in this case.

Nero Signs a Check "Pay to the Order of Olive