19.Mr. D placed his check booklet in his cabinet. Ms A, Mr. D's kasambahay, stole the said check booklet and wrote a check payable to her order amounting PIM by forging Mr. D's signature. Ms. A generally endorsed and delivered the note to H. Mr. H was able to encash the check from the drawee-acceptor-bank. The drawee-acceptor-bank debited PIM from the account of Mr. D.* Which of the following statements is correct?

a. Mr. D suffer the loss

b. Mr. D ask drawee-acceptor-bank to recredit the PIM to his bank account because the later violated its warranty that the signature of drawer is genuine

c. The instrument is not negotiable because of forgery of Mr. D's signature

d. The drawee-bank may never go after Mr. A, the forger

20. S sold his ring to B for P50,000 under the following terms: down payment of P30,000 and the balance payable at month end. A security, B executed a chattel mortgage on the ring. B defaulted in the payment of the balance. By reason thereof, S foreclosed the chattel mortgage on the ring. However, only P15,000 was realized in the foreclosure sale. Can S still proceed against b to collect the deficiency of P5,000 arising from foreclosure of chattel mortgage on the ring sold? *

a. No, because recovery of deficiency is only available in execution sales.

b. No, because recto law prohibits recovery of deficiency

c. Yes, because recto law does not apply to sale on straight terms and the general rule is that if the foreclosure sale is chattel mortgage results in deficiency the same may be recovered by the mortgage in the absence of stipulation to the contrary.

d. Yes if deficiency has been agreed upon contrary to recto law.