TITLE 4: ECONOMIC RESOURCES
DIVISION 6: BANKING AND FINANCIAL INSTITUTIONS
§ 6550. Indorsement and Signature Guaranty. (a) A bank may assume secondary liability as an endorser of a negotiable or nonnegotiable instrument which it owns or has received for collection or that of the guarantor of the genuineness of a signature. (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. A guaranty of the signature does not otherwise guarantee his rightfulness of the particular transfer. A bank may disclaim all or any part of the foregoing obligation in its guaranty. Source: PL 3-104, § 649.