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| Gomer developed a fraudulent system whereby he could obtain checks payable to the order of certain repairmen who serviced various large corporations. Gomer observed the delivery trucks of repairmen who did business with the corporations, and then he submitted bills on the bogus letterhead of the repairmen to the selected large corporations. The return envelope for payment indicated a local post office box. When the checks arrived, Gomer would forge the payees’ signatures and cash the checks. The parties cashing the checks are holders in due course. Who will bear the loss assuming the amount cannot be recovered from Gomer? A. Intermediate parties who endorsed the instruments for collection. B. The drawee banks. C. The ultimate recipients of the proceeds of the checks even though they are holders in due course. D. The defrauded corporations. |