Unauthorized Indorsements. 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 fi rm told him not to open the account. Schor signed a blank line on the signature card, changed the mailing address to his offi ce, and opened the account in Romanelli’s name. In a purported attempt to obtain credit for the fi rm 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 fi led 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? [Andre Romanelli, Inc. v. Citibank, N.A., 60 A.D.3d 428, 875 N.Y.S.2d 14 (1 Dept. 2009)]