Commercial Law, 2012 Bar — Question 22

MULTIPLE CHOICE

The signature of X was forged as drawer of a check. The check was deposited in the account of Y and when deposited was accepted by AAA Bank, the drawee bank. Subsequently, AAA Bank found out that the signature of X was actually forged. Which statement is most accurate? A) The drawee bank can recover from Y, because the check was deposited in his account. B) The drawee bank can recover from X, because he is the drawer even though his signature was forged. C) The drawee bank is estopped from denying the genuineness of the signature of the X, the drawer of the check. D) The drawee bank can recover from Y because as endorser he warrants the genuineness of the signature.

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