• While employed as the bookkeeper by City Rentals Inc. (City), Robin Bauer forged several checks on City's account and deposited them directly into Rodney Kesler's bank account to repay the money she had borrowed from him. Kesler never saw or indorsed the checks and had no idea the funds had been embezzled. City notified Kesler that Bauer had forged the checks, and demanded that he return the funds. Kesler refused, so City sued him. He argued that because he had received the checks as payment of debts, he was a holder in due course and did not have to return the money. Should City be able to recover the funds? Why or why not?