(a) A bank may assume secondary liability as an indorser of a negotiable or non-negotiable instrument which it owns or has received for collection or that of the guarantor of the genuineness of a signature.
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(b) A guaranty of the signature means only that (1) the signature is not forged; (2) the signer is the holder or has the authority to sign in the name of the holder; and (3) the signer has legal capacity to sign. (c) A guaranty of the signature does not otherwise guaranty his rightfulness of the particular transfer. (d) A bank may disclaim all or any part of the foregoing obligation in its guaranty. SOURCE: GC § 30310. 2013 NOTE: Subsection designation (c) and (d) were added to adhere to the Compiler’s alpha-numeric scheme in accordance to the authority granted by 1 GCA § 1606.