Quincy signs a check payable to Richland Investors,Inc. ,and gives it to Richland,leaving the amount blank but authorizing Richland to fill in the check for $1,000.Richland fills in $1,459 and negotiates the check to Silverado Bank,to whom Richland owes $1,459.Silverado Bank,an HDC,can enforce the check for

Question

Quizplus · Accepted Answer

According to the rule of completion of incomplete instruments, the person authorized to complete the instrument cannot exceed the amount authorized by the maker. In this case, Quincy authorized Richland to fill in the check for $1,000. However, Richland exceeded the authority by filling the check for $1,459.

While Richland is liable to Quincy for the excess amount, Silverado Bank is a holder in due course and can enforce the check for its full amount of $1,459. Therefore, the answer is D.

Quincy Signs a Check Payable to Richland Investors,Inc