172

LAWS OF MARYLAND

[Ch. 49

added to a signature mean that the signer engages that if
the instrument is not paid when due he will pay it
according to its tenor, but only after the holder has
reduced his claim against the maker or acceptor to
judgment and execution has been returned unsatisfied, or
after the maker or acceptor has become insolvent or it is
otherwise apparent that it is useless to proceed against
him.

(3)    lords of guaranty which do not otherwise
specify guarantee payment.

(4)    No words of guaranty added to the signature of
a sole maker or acceptor affect his liability on the
instrument. Such words added to the signature of one of
two or more makers or acceptors create a presumption that
the signature is for the accommodation of the others.

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

(6)    Any guaranty written on the instrument is
enforcible notwithstanding 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

(iii) To an acceptor of a draft if the holder
in due course took the draft after the acceptance or
obtained the acceptance without knowledge 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