Forged Negotiable Instrument and Holder Status

The video tutorial discusses the implications of forged instruments, highlighting the liability of the forger and the responsibilities of banks and individuals whose signatures are forged. It explains that the forger is treated as if they signed their own name, making them liable. Banks must verify signatures with ordinary care, and individuals must protect their instruments from theft. If negligence leads to forgery, the negligent party may be liable. Additionally, individuals must review account statements for forgeries and report them within a year to avoid being barred by the statute of limitations.

What obligations does the forger of a forged instrument have?

What is the responsibility of the drawee bank when they receive a forged instrument?

Under what circumstances could the individual whose name was forged be held liable?

What actions must the individual whose name was forged take regarding their account statements?

What is the consequence of not making a claim regarding a forged instrument within a year?