An indorsing transferor of a negotiable instrument makes five transfer warranties to all subsequent transferees.

Question

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An indorsing transferor of a negotiable instrument does make five transfer warranties to all subsequent transferees. These warranties include: (1) that the instrument is genuine; (2) that the indorser has a legal right to transfer the instrument; (3) that all signatures on the instrument are authentic and authorized; (4) that the instrument has not been altered; and (5) that there are no defenses or claims that could be used against the instrument.

An Indorsing Transferor of a Negotiable Instrument Makes Five Transfer