Flossie signs a check payable to Glenn and gives it to him, leaving the amount blank but authorizing him to fill it in for $1,000. Glenn fills in $1,500 and negotiates the check to Home Federal Bank, an HDC. Home Federal can enforce the check for
A) $0.
B) $500.
C) $1,000.
D) $1,500.

Question

Quizplus · Accepted Answer

Since Glenn was authorized to fill in the blank for up to $1,000, filling it in for $1,500 is within the scope of his authority. Therefore, Home Federal can enforce the check for the full amount of $1,500. As an HDC, Home Federal is protected from any claims that Flossie may have against Glenn or anyone else involved in the negotiation of the check.

Flossie Signs a Check Payable to Glenn and Gives It