Question

Franz signs a $1.000 note payable to ABC Bank. To help Franz get the loan approved, Amy also signs the note as an accommodation maker. O a Amy's liability is the same as that of an accommodation indorser on a check Ob. The liability of each party to the bank is Franz $500 and Amy $500 Oc Amy has secondary liability on the note. Od Amy and Franz both have primary liability on the note. (4 points) Time remaining: 24:43 Not Yet Answered tion 6 Sarah has a checking account at First Bank. Orrin steals one of her blank checks, writes a check for $250 and then forges Sarahts signature. He then presents the check to First Bank for payment. First Bank pays the forged instrument. Which of the following statements is correct? O a First Bank will have to recredit the $250 to Sarah's account if she so requests. Ob. First Bank can collect the $250 from Orrin if they can find him and he has the money Oc Sarah is primarily liable on the check even if she did not sign it and was not negligent in allowing Orrin to take the blank check Od. Two of the above, (a) and (b), are correct. (4 points) Not Yet Answered Time remaining: 243 stion 7

Answer 1

Answers are :

1. Franz signs a $1,000 note payable to ABC Banks. To help Franz......

Answer : d.Amy and Franz both have primary liability on the note.

2. Sarah has a checking account at First Bank. Orrin steals one of her blank....

Answer : c.Sarah is primarily liable on the check even if she did not sign it and was not negligent in allowing Orrin to take the blank check.