Explain when presentment warranties apply. Identify the presentment warranties on a check and a promissory note
Presentment warranties apply to someone who demands payment of an instrument from anyone liable on it. Presentment warranties apply when an instrument is returned to the maker or drawee for payment. Someone who presents a check for payment warrants that he is a holder, the check has not been altered, and he has no reason to believe the drawer's signature is forged. If any of these warranties are untrue, the bank has the right to demand a refund from the presenter. For a promissory note, the presenter makes only one warranty, and that is that he is a holder of the note. The presenter does not need to warrant that the note is not altered or that the maker's signature is authentic because a note is presented for payment to the maker himself.
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