52 Qato forges Rush’s name as the drawer of a stolen check, drawn on Scrutiny Bank, makes the item payable to Qato, and deposits it in his own Scrutiny account. In response to a call from the bank, Rush ratifies the signature. In this situation, Rush is liable to pay the amount to a. ordinary holders only. b. HDCs only. c. ordinary holders, HDCs, and holders through HDCs. d. no one.
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52 Qato forges Rush’s name as the drawer of a stolen check, drawn on Scrutiny Bank, makes the item payable to Qato, and deposits it in his own Scrutiny account. In response to a call from the bank, Rush ratifies the signature. In this situation, Rush is liable to pay the amount to
a. ordinary holders only.
b. HDCs only.
c. ordinary holders, HDCs, and holders through HDCs.
d. no one.
54Textile Inc. sells goods to United Stores in exchange for a note signed by the buyer. Textile sells the note to Valley Finance Company. In this situation, transfer warranties arise because
a. Valley has no knowledge of any bankruptcy proceedings against United.
b. the note was transferred for consideration.
c. Textiles did not alter the note.
d. the signatures on the note were authentic and authorized
57It is assumed that a drawer or maker will recognize his or her own signature and that a maker or an acceptor will recognize whether an instrument has been materially altered. Therefore, with respect to any of these parties who in good faith accepts an instrument, in terms of presentment warranties,
a. only the warranty that the person obtaining acceptance is entitled to enforce the instrument applies.
b. all of them apply.
c. only the warranties that the instrument has not been altered and that the person obtaining acceptance has no knowledge of an unauthorized signature apply.
d. none of them apply.
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