(1) If a person acting, or purporting to act, as a representative signs an instrument
by signing either the name of the represented person or the name of the signer, the
represented person is bound by the signature to the same extent the represented person
would be bound if the signature were on a simple contract. If the represented person is bound, the signature of the representative is the “authorized
signature of the represented person” and the represented person is liable on the instrument,
whether or not identified in the instrument.
(2) If a representative signs the name of the representative to an instrument and
that signature is an authorized signature of the represented person, the following
(a) If the form of the signature shows unambiguously that the signature is made on
behalf of the represented person who is identified in the instrument, the representative
is not liable on the instrument.
(b) Subject to subsection (3), if the form of the signature does not show unambiguously
that the signature is made in a representative capacity, or the represented person
is not identified in the instrument, the representative is liable on the instrument
to a holder in due course that took the instrument without notice that the representative
was not intended to be liable on the instrument. With respect to any other person, the representative is liable on the instrument unless
the representative proves that the original parties to the instrument did not intend
the representative to be liable on the instrument.
(3) If a representative signs the name of the representative as drawer of a check
without indication of the representative's status and the check is payable from an
account of the represented person who is identified on the check, the signer is not
liable on the check if the signature is an authorized signature of the represented
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