When a negotiable instrument is transferred,the transferor warrants all EXCEPT:
A) that the transferor is a holder in due course of the instrument.
B) all signatures are authentic.
C) as far as she knows the issuer is solvent.
D) the instrument has not been altered.

Question

Quizplus · Accepted Answer

The transferor may not necessarily be a holder in due course of the instrument, so they cannot warrant that they are. The other options are all valid items that the transferor warrants when transferring a negotiable instrument.

When a Negotiable Instrument Is Transferred,the Transferor Warrants All EXCEPT