Question

generally, when an indorsement is unauthorized, the burden of loss falls on the first party to take the instrument. True or False

Answer 1

false

Step-by-step explanation:

Unauthorized Indorsement: RULE: The first party to accept an instrument bearing an unauthorized indorsement will bear the burden of loss, unless the unauthorized indorsement is that of the payee, in which case the loss falls on the drawer/maker.