An imposter is someone who impersonates a payee and induces the maker or drawer to issue an instrument in the payees name and give the instrument to the imposter If the imposter forges the indorsement of the named payee, the drawer or maker is liable on the instrument to any person who, in good faith, pays the instrument or takes it for value or for collection UCC 3404(a) This rule is called the imposter rule example Fred purchases goods by telephone from Cynthia Fred has never met Cynt

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Common Issues Arising in Negotiation of Commercial Paper A number of problems commonly arise that affect the negotiation of commercial paper Here we take up three Negotiation Subject to Rescission A n... View the full answer