Cathy steals the note from bob

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Reference no: EM13787564

Allan makes a promissory note for $1000 payable to the order of Bob. Cathy steals the note from Bob, indorses (forgets) Bob's name on the back, and gives it to David, in exchange for a TV set. David negotiates the note for value to Emma. Emma then presents the note to Allan for pay,ent. Allan refuses to pay the note because Bob has told him that the note had been stolen. Based on this scenario, which of the following is FALSE:

A) Emma can recover the amount of the note against David because he warranted to

B) Allan is no longer liable on his underlying obligation to Bob

C) After David pays Emma, he can recover against Cathy

D) If David can't find Cathy, he must bear the risk of loss caused by Cathy's

Reference no: EM13787564

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