"Demand draft" does not include a check purportedly drawn by and bearing the signature of a fiduciary, as defined in section 3- 1307, subsection 1, paragraph (a).

Sec. 4. 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. 5. 11 MRSA §3-1416, sub-§(1), ¶(f) is enacted to read:

(f)__If the instrument is a demand draft, creation of the instrument according to the terms on its face was authorized by the person identified as the drawer.

Sec. 6. 11 MRSA §3-1416, sub-§(5) is enacted to read:

(5)__If the warranty in subsection (1), paragraph (f) is not given by a transferor under applicable conflict of laws rules, then the warranty is not given to that transferor when that transferor is a transferee.

Sec. 7. 11 MRSA §3-1417, sub-§(1), as enacted by PL 1993, c. 293, Pt. A, §2, is amended to read:

(1) If an unaccepted draft is presented to the drawee for payment or acceptance and the drawee pays or accepts the draft, the person obtaining payment or acceptance, at the time of presentment, and a previous transferor of the draft, at the time of transfer, shall warrant to the drawee making payment or accepting the draft in good faith that:

(a) The warrantor is, or was, at the time the warrantor transferred the draft, a person entitled to enforce the draft or authorized to obtain payment or acceptance of the draft on behalf of a person entitled to enforce the draft;

(b) The draft has not been altered; and

(c) The warrantor has no knowledge that the signature of the drawer of the draft is unauthorized.; and