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Which of the Following Describes a Bank's Duty to Ensure

Question 20

Multiple Choice

Which of the following describes a bank's duty to ensure that a drawer's signature is genuine?


A) The bank is not under a duty to determine the authenticity of drawers' signatures.
B) The bank has a duty to discover forgeries only if they are reasonably obvious.
C) The bank has a duty to discover forgeries,and is liable if it pays an instrument on which the drawer's signature was forged.
D) The bank has a duty to discover forgeries,but only if the drawer has given notice of the likelihood of a forgery,such as if the drawer has lost some blank checks.

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