Qacy signs a check payable to Regal Investors,Inc. ,and gives it to Regal,leaving the amount blank but authorizing Regal to fill in the check for $1,000.Regal fills in $1,500 and negotiates the check to State Bank,to whom Regal owes $1,500.State Bank,an HDC,can enforce the check for

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Quizplus · Accepted Answer

Regal had authorization to fill in the check for up to $1,000, but they exceeded that amount by filling in $1,500. However, as an HDC, State Bank can still enforce the check for the full amount of $1,500. Qacy's original authorization combined with Regal's endorsement made the check a negotiable instrument, and as an HDC, State Bank is entitled to enforce the instrument for the full amount stated on the check.

Qacy Signs a Check Payable to Regal Investors,Inc