Statutes > New Mexico Statutes > Chapter 58 - Financial Institutions and Regulations. > Article 1 - Banking Generally, 58-1-1 through 58-1-85. > Section 58-1-31 - Endorsement and signature guaranty and unauthorized assumption of liability.

Section 58-1-31 - Endorsement and signature guaranty and unauthorized assumption of liability.

58-1-31. Endorsement and signature guaranty and unauthorized assumption of liability.

A.     A state bank may assume secondary liability as an endorser of a negotiable or nonnegotiable instrument, which it owns or has received for collection. A state bank may assume the liability of the guarantor of the genuineness of a signature.   

B.     Except as expressly permitted in the Banking Act [58-1-1 NMSA 1978], a state bank shall not assume liability as an insurer or as a guarantor or endorser of any security instrument or obligation.