Commercial Law, 2011 Bar — Question 24

MULTIPLE CHOICE

X is the holder of an instrument payable to him (X) or his order, with Y as maker. X then indorsed it as follows: “Subject to no recourse, pay to Z. Signed, X." When Z went to collect from Y, it turned out that Y's signature was forged. Z now sues X for collection. Will it prosper? A) Yes, because X, as a conditional indorser, warrants that the note is genuine. B) Yes, because X, as a qualified indorser, warrants that the note is genuine. C) No, because X made a qualified indorsement. D) No, because a qualified indorsement does not include the warranty of genuineness.

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