While assistant treasurer of Travco Corporation, Frank Mitchell caused two checks, each payable to a fictitious company, to be drawn on Travco's account with Brown City Savings Bank.
In each case, Mitchell indorsed the check in his own name and then cashed it at Citizens Federal Savings & Loan Association of Port Huron. Both checks were cleared through normal banking channels and charged against Travco's account with Brown City.
Travco subsequently discovered the embezzlement, and after its demand for reimbursement was denied, it brought this suit against Citizens. Is the indorsement effective? Explain.