The _____ provides that the transferee of an instrument acquires the same rights as the transferor had.
A) general rule on forged indorsements
B) dishonest employee rule
C) imposter rule
D) fictitious payee rule
E) shelter rule

Question

Quizplus · Accepted Answer

The shelter rule provides that the transferee of an instrument acquires the same rights as the transferor had. This means that even if the transferor did not have valid ownership of the instrument, the transferee can still acquire valid ownership through the shelter rule.

The _____ Provides That the Transferee of an Instrument Acquires