Which of the following is a warranty of the transferor?
A) Transferor has no knowledge of any insolvency proceedings with respect to the maker, acceptor, or drawer of an unaccepted instrument.
B) Transferor warrants that all signatures are authentic and authorized.
C) Transferor warrants that he is entitled to enforce the instrument.
D) All of these are warranties of the transferor.

Question

Quizplus · Accepted Answer

All of the options listed are indeed warranties of the transferor. These warranties are made to the transferee (and in some cases, to subsequent transferees) when an instrument is transferred. They are designed to protect the transferee by ensuring the legitimacy and enforceability of the instrument.

Which of the Following Is a Warranty of the Transferor