J. MILLARD TAWES, Governor                        849

presumption that the signature is for the accommodation of the
others.

(5)   When words of guaranty are used presentment, notice of dis-
honor and protest are not necessary to charge the user.

(6)  Any guaranty written on the instrument is enforcible notwith-
standing any statute of frauds.

3—417. Warranties on Presentment and Transfer.

(1) Any person who obtains payment or acceptance and any prior
transferor warrants to a person who in good faith pays or accepts that

(a)  he has a good title to the instrument or is authorized to obtain
payment or acceptance on behalf of one who has a good title; and

(b)  he has no knowledge that the signature of the maker or drawer
is unauthorized, except that this warranty is not given by a holder
in due course acting in good faith

(i) to a maker with respect to the maker's own signature; or

(ii) to a drawer with respect to the drawer's own signature,
whether or not the drawer is also the drawee; or

(in) to an acceptor of a draft if the holder in due course took the
draft after the acceptance or obtained the acceptance without knowl-
edge that the drawer's signature was unauthorized; and

(c)  the instrument has not been materially altered, except that
this warranty is not given by a holder in due course acting in good
faith

(i)  to the maker of a note; or

(ii) to the drawer of a draft whether or not the drawer is also
the drawee; or

(in) to the acceptor of a draft with respect to an alteration made
prior to the acceptance if the holder in due course took the draft
after the acceptance, even though the acceptance provided "payable
as originally drawn" or equivalent terms; or

(iv) to the acceptor of a draft with respect to an alteration made
after the acceptance.

(2)  Any person who transfers an instrument and receives consid-
eration warrants to his transferee and if the transfer is by indorse-
ment to any subsequent holder who takes the instrument in good
faith that

(a)  he has a good title to the instrument or is authorized to obtain
payment or acceptance on behalf of one who has a good title and
the transfer is otherwise rightful; and

(b)  all signatures are genuine or authorized; and

(c)  the instrument has not been materially altered; and

(d)  no defense of any party is good against him; and

(e)  he has no knowledge of any insolvency proceeding instituted
with respect to the maker or acceptor or the drawer of an unaccepted
instrument.