A drawer who is induced by an imposter to issue a check in the name of an impersonated payee can avoid payment on the check to an innocent holder.

Question

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In general, if a drawer is induced by an imposter to issue a check, the drawer is still liable to pay an innocent holder because the drawer is considered to have been negligent in verifying the identity of the payee.

A Drawer Who Is Induced by an Imposter to Issue