(d)__With respect to any 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

[Change existing comment to comment 1.]

2. For an explanation of subsection (a)(4) [Maine subsection (1)(d)], see comment 8 to Section 3-416 [Maine section 3-1416].

SUMMARY

Several states have adopted nonuniform amendments to Articles 3 and 4 of the Uniform Commercial Code dealing with the responsibility for unauthorized telephone-generated checks. In 2002, the National Conference of Commissioners on Uniform State Laws (NCCUSL) adopted amendments to Articles 3 and 4 of the Uniform Commercial Code. Those amendments include new warranties that generally place the responsibility for such checks on depositary banks rather than on payor banks. This bill amends Articles 3-A and 4 of the Maine Uniform Commercial Code to include such warranties adopted by NCCUSL. The warranties are limited to items that are drawn on a consumer account and do not bear a manual signature.