§ 554.3402

554.3402 Signature by representative. 1. If a person acting, or purporting to act, as a representative signs an instrument by signing either the name of the represented person or the name of the signer, the representedperson is bound by the signature to the same extent the represented person would be bound ifthe signature were on a simple contract. If the represented person is bound, the signature ofthe representative is the 'authorized signature of the represented person' and the representedperson is liable on the instrument, whether or not identified in the instrument. 2. If a representative signs the name of the representative to an instrument and the signature is an authorized signature of the represented person, the following rules apply: a. If the form of the signature shows unambiguously that the signature is made on behalf of the represented person who is identified in the instrument, the representative is not liableon the instrument. b. Subject to subsection 3, if the form of the signature does not show unambiguously that the signature is made in a representative capacity or the represented person is not identifiedin the instrument, the representative is liable on the

of the signature does not show unambiguously that the signature is made in a representative capacity or the represented person is not identifiedin the instrument, the representative is liable on the instrument to a holder in due course thattook the instrument without notice that the representative was not intended to be liable on theinstrument. With respect to any other person, the representative is liable on the instrumentunless the representative proves that the original parties did not intend the representative tobe liable on the instrument. 3. If a representative signs the name of the representative as drawer of a check without indication of the representative status and the check is payable from an account of therepresented person who is identified on the check, the signer is not liable on the check if thesignature is an authorized signature of the represented person. 94 Acts, ch 1167, §49, 121, 122; 2013 Acts, ch 30, §261Referred to in §554.3308, 554.3401 Sat Dec 23 01:56:53 2023 Iowa Code 2024, Section 554.3402 (25, 0)