11 GCA § 106181: Indorsement and Signature Guaranty.

(a) A bank may assume secondary liability as an indorser of a negotiable or non-negotiable instrument which it owns or has received for collection or that of the guarantor of the genuineness of a signature.

(b) A guaranty of the signature means only that

(1) the signature is not forged;

(2) the signer is the holder or has the authority to sign in the name of the holder; and

(3) the signer has legal capacity to sign.

(c) A guaranty of the signature does not otherwise guaranty his rightfulness of the particular transfer.

(d) A bank may disclaim all or any part of the foregoing obligation in its guaranty.