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If the Drawee Bank Mistakenly Paid a Check with a Forged

Question 31

Multiple Choice

If the drawee bank mistakenly paid a check with a forged or unauthorized drawer's signature on it:


A) the bank can recover the amount from the person whose name had been mentioned in the check albeit without authorization.
B) the bank can recover if it paid the check to a presenter who had taken the instrument in good faith and for value.
C) the bank cannot recover if it paid the check to a forger or unauthorized signer.
D) the bank cannot recover it if the presenter had taken the instrument in good faith and for value.

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