Sec. 11. 11 MRSA §4-207-A, sub-§(1), ¶(f) is enacted to read:

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

Sec. 12. 11 MRSA §4-207-A, sub-§(6) is enacted to read:

(6)__If the warranty in subsection (1), paragraph (f) is not given by a transferor or collecting bank under applicable conflict of laws rules, then the warranty is not given to that transferor when that transferor is a transferee nor to any prior collecting bank of that transferee.

Sec. 13. 11 MRSA §4-207-B, sub-§(1), as enacted by PL 1993, c. 293, Pt. B, §26, 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, warrant to the drawee that pays or accepts 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 purported drawer of the draft is unauthorized.; and

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

Sec. 14. 11 MRSA §4-207-B, sub-§§(7) and (8) are enacted to read:

(7)__A demand draft is a check, as provided in section 3-1104, subsection (6).

(8)__If the warranty in subsection (1), paragraph (d) is not