11 Guam Code Ann. § 106181
Terms Used In 11 Guam Code Ann. § 106181
- Guarantor: A party who agrees to be responsible for the payment of another party's debts should that party default. Source: OCC
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
COL292017
11 Guam Code Ann. FINANCE & TAXATION
CH. 106 BANKS
(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.
(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 Guam Code Ann.
§ 1606.