Exam 28: Liability of Parties

Discuss the effect of an unauthorized signature on an instrument.

Tanika has a checking account at First Bank.Orrin steals one of her blank checks,writes a check for $250 to himself,and then forges Tanika's signature.Orrin then indorses the instrument to Paul in payment of a debt.Paul,not realizing Orrin has forged Tanika's signature,presents the instrument to First Bank for payment.At First Bank's request,Paul indorses the instrument,and the bank then pays him $250.Which of the following is correct?

An indorser is discharged if a check is not presented for payment or given to a depositary bank for collection within ____ days of the indorsement.

A demand note is dishonored if the maker does not pay it:

What warranties are given by presenters depend upon who is the payor or acceptor.