Sec. 1. 11 MRSA §3-1103, sub-§(1), ¶¶(a-1) and (a-2) are enacted to read:

(a-1)__"Consumer account" means an account established by an individual primarily for personal, family or household purposes.

(a-2)__"Consumer transaction" means a transaction in which an individual incurs an obligation primarily for personal, family or household purposes.

Sec. 2. 11 MRSA §3-1103, sub-§(1), ¶(l) is enacted to read:

(l)__"Remotely created consumer item" means an item drawn on a consumer account that is not created by the payor bank and does not bear a handwritten signature purporting to be the signature of the drawer.

Sec. 3. 11 MRSA §3-1416, sub-§(1), ¶¶(d) and (e) as enacted by PL 1993, c. 293, Pt. A, §2, are amended to read:

(d) The instrument is not subject to a defense or claim in recoupment of any party that may be asserted against the warrantor; and

(e) The warrantor has no knowledge of any insolvency proceeding commenced with respect to the maker or acceptor or, in the case of an unaccepted draft, the drawer.; and

Sec. 4. 11 MRSA §3-1416, sub-§(1), ¶(f) is enacted to read:

(f)__With respect to a remotely created consumer item, the person on whose account the item is drawn authorized the issuance of the item in the amount for which the item is drawn.

Uniform Comments

8. Subsection (a)(6) [Maine subsection (1)(f)] is based on a number of nonuniform amendments designed to address concerns about certain kinds of check fraud. The provision implements a limited rejection of Price v. Neal, 97 Eng. Rep. 871 (K.B. 1762), so that in certain circumstances (those involving remotely created consumer checks) the payor bank can use a warranty claim to absolve itself of responsibility for honoring an unauthorized item. The provision rests on the premise that monitoring by depositary banks can control this type of fraud more effectively than any practices readily available to payor banks. The