Qato forges Rush's name as the drawer of a stolen check, drawn on Scrutiny Bank, makes the item payable to Qato, and deposits it in his own Scrutiny account. In response to a call from the bank, Rush ratifies the signature. In this situation, Rush is liable to pay the amount to
A)no one.
B)ordinary holders only.
C)ordinary holders, HDCs, and holders through HDCs.
D)HDCs only.

Question

Quizplus · Accepted Answer

Rush's ratification of the forged signature means he accepts liability for the check as if he had originally authorized the signature. This makes him liable to ordinary holders, holders in due course (HDCs), and those who acquire the check from HDCs, as his ratification effectively legitimizes the check for all subsequent holders.

Qato Forges Rush's Name as the Drawer of a Stolen