Tammy Ford wrote a check for $4,000. Payable to Bettyâ??s Boutique, L.L.C. Tammy gave the check to B

Tammy Ford wrote a check for $4,000. Payable to Betty’s Boutique, L.L.C. Tammy gave the check to Betty, one of the owners of the boutique. Betty and her partner Heather each indorsed the check in blank and deposited to Heather’s personal checking account in First National Bank which gave Heather credit for the deposit. When First National presented the check for payment to Tammy’s bank (the drawee), it was dishonored for insufficient funds. In the meantime, Heather’s account at First National had been depleted. First National then demanded that Betty and Heather must repay the bank for the value of the check which was withdrawn.Question: Are Betty and Heather liable to First National Bank for the $4,000 check?

 

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