Flores forges Grendel's signature on a check "payable to the order of Flores" drawn on Grendel's account in Harbortown Bank. Most likely, if the bank pays the check
A) the Federal Reserve will reimburse all parties for their costs.
B) Grendel and the bank will each suffer half of the amount of the loss.
C) Grendel will be liable for the amount.
D) the bank will have to recredit Grendel's account.

Question

Quizplus · Accepted Answer

The bank is generally liable for paying a check with a forged signature and must recredit the account of the account holder, Grendel, for the unauthorized transaction.

Flores Forges Grendel's Signature on a Check "Payable to the Order