Stephen Schor, an accountant in New York City, advised his client, Andre Romanelli, Inc., to open an account at J. P. Morgan Chase Bank, N.A., to obtain a favorable interest rate on a line of credit. Romanelli’s representative signed a signature card, which he gave to Schor. When the accountant later told Romanelli that the rate was not favorable, the firm told him not to open the account. Schor signed a blank line on the signature card, changed the mailing address to his office, and opened the account in Romanelli’s name. In a purported attempt to obtain credit for the firm elsewhere, Schor had its principals write checks payable to themselves for more than $4.5 million, ostensibly to pay taxes. He indorsed and deposited the checks in the Chase account and eventually withdrew and spent the funds. Romanelli filed a suit in a New York state court against the bank, alleging that a drawer is not liable on an unauthorized indorsement. Is this the rule? What are its exceptions? Which principle applies to these facts, and why?