In all instances other than a drawee of an unaccepted draft or uncertified check,the only presentment warranty that is given is that the warrantor is a person entitled to enforce the instrument or is authorized to obtain payment on behalf of the person entitled to enforce.

Question

Quizplus · Accepted Answer

The statement is true according to the Uniform Commercial Code (UCC) section 3-416(a). It means that the party making presentment of an instrument warrants that they have the right to enforce it or are authorized by the rightful holder to collect payment. This warranty does not extend to a drawee of an unaccepted draft or uncertified check, as they have yet to accept or certify the instrument.

In All Instances Other Than a Drawee of an Unaccepted