Section 58-1-31 - Endorsement and signature guaranty and unauthorized assumption of liability

A. A state bank may assume secondary liability as an endorser of a negotiable or nonnegotiable instrument, which it owns or has received for collection. A state bank may assume the liability of the guarantor of the genuineness of a signature. B. Except as expressly permitted in the Banking Act, a state bank shall not assume liability as an insurer or as a guarantor or indorser [endorser] of any security instrument or obligation. History: 1953 Comp., § 48-22-30, enacted by Laws 1963, ch. 305, § 30. ANNOTATIONSBracketed material. — The bracketed material was inserted by the compiler and is not part of the law. Am. Jur. 2d, A.L.R. and C.J.S. references. — 10 Am. Jur. 2d Banks §§ 614, 634, 635. Authority of officer or agent to bind corporation as guarantor or surety, 34 A.L.R.2d 290.