Answer: Bob, the drawer of the check, will most likely bear the loss in this scenario. The Uniform Commercial Code (UCC), which governs negotiable instruments such as checks, includes a concept known as the "imposter rule." Under this rule, when a person issues a check to someone they believe to be a particular payee, but who is actually an imposter, the loss falls on the drawer of the check, not on the bank or any subsequent parties who may have cashed or negotiated the check.
In this case, Bob issued the check to "Darby," who he believed to be the payee. Even though Etta was an imposter and not the intended payee, the fact that she was able to indorse the check and pass it on to Felipe does not shift the loss away from Bob. County Bank is not likely to be held responsible for cashing the check, as they had no way of knowing that the payee was an imposter. Ultimately, Bob will need to bear the loss of the check, unless he is able to recover the funds from Etta or another responsible party.