If a bank pays a check that bears a forged signature of the drawer, the transaction will be treated as one in which the bank paid out of:

Question

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A check that bears a forged signature of the drawer or payee generally is not properly payable from the customer's account because the bank is not following the instructions of the depositor precisely as he gave them. The bank is expected to be familiar with the authorized signature of its depositor. If it pays such a check, Article 4 of the Uniform Commercial Code will treat the transaction as one in which the bank paid out its own funds rather than the depositor's funds.

If a Bank Pays a Check That Bears a Forged