Forged indorsement: acceptor remains liable if he knew or had reason to believe forgery when accepting the bill. An acceptor of a bill of exchange already bearing a forged indorsement is not excused from liability if, at the time of acceptance, he knew or had reason to believe the indorsement was forged, such that the acceptor's knowledge or reasonable belief at acceptance determines liability despite the forged indorsement.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Forged indorsement: acceptor remains liable if he knew or had reason to believe forgery when accepting the bill.
An acceptor of a bill of exchange already bearing a forged indorsement is not excused from liability if, at the time of acceptance, he knew or had reason to believe the indorsement was forged, such that the acceptor's knowledge or reasonable belief at acceptance determines liability despite the forged indorsement.
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