National Check Professional (NCP) Certification Practice Test

Under UCC presentment warranties, what does the person obtaining payment warrant?

1. They are the rightful owner of the check

2. They have knowledge that all signatures are authorized

3. They have no knowledge that the signature of the drawer is unauthorized

4. They have verified the identity of the drawer

The correct answer is: They have no knowledge that the signature of the drawer is unauthorized

The presentment warranty under the Uniform Commercial Code (UCC) involves specific assurances made by the person presenting a check for payment. One key aspect of this warranty is that the presenter warrants they have no knowledge that the signature of the drawer is unauthorized. This means that when the person presents the check, they are affirming that, to the best of their knowledge, the signature of the person who wrote the check (the drawer) is authentic and that there is no evidence that the signature is fraudulent or unauthorized. This warranty protects banks and other entities accepting checks for payment, as it provides a level of assurance that the check is legitimate based on the presenter's belief about the validity of the drawer's authorization. Therefore, this choice accurately reflects a crucial aspect of the presentment warranties, tying back to the responsibilities and assurances inherent in the check handling process as outlined in the UCC. The other options touch on aspects like ownership, knowledge of authorized signatures, and verification of identity, but they do not directly address the specific wording and intent of the presentment warranty regarding unauthorized signatures, making this the correct interpretation of the relevant UCC provisions.