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65. Kira forges Lews name as the drawer of a stolen check, drawn on Metro Bank, and makes the item payable to Kira. Lew is liable to pay the amount to

a. ordinary holders, HDCs, and holders through HDCs.

b. ordinary holders only.

66 To buy a truck under warranty from Detour Motors, Eli, a consumer, signs a note payable to the dealer. The note includes the notice required by FTC Rule 433. The dealer sells the note to Finance Company, which takes it in good faith, for value, and unaware of any defenses against payment. Eli discovers that the truck is defective and returns it to Detour Motors. The consumer can assert the breach of warranty to avoid payment on the note against

a. Detour Motors and Finance Company.

b. Finance Company only.

c. no one.

d. Detour Motors only

c. HDCs only. d. no one

67

Ruiz writes a check drawn on his account at Security Bank and payable to the order of Twyla. The bank does not pay the check. Ruiz is

a. liable to the bank for the amount of the check

. b. entitled to payment of the amount of the check from the payee.

c. absolved of liability on the check.

d. liable to the payee for the amount of the check.

70 Ana issues a check drawn on Best Bank payable to the order of Best, who indorses the check and cashes it at Discount Mart. Discount deposits the check into the stores account at El Centro Credit, which presents it for payment to Best Bank. The drawees payment of the check in good faith to El Centro discharges the liability of

a. none of the parties.

b. Best Bank only.

c. Ana and Best Bank only.

d. all of the parties.