Under Revised Article 3 of the Uniform Commercial Code (UCC) rules for beneficiaries, in the event of a breach of transfer warranty, _____.

Multiple Choice

a beneficiary of the transfer warranties who took the instrument in good faith may not recover from the warrantor an amount equal to the loss suffered as a result of the breach

the damages recoverable may not be more than the amount of the instrument plus expenses and loss of interest incurred as a result of the breach

no damages may be recovered

the damages recoverable will be less than the amount of the instrument