Section 69 — Canada Business Corporations Act: Warranties of guarantor of signature

A person who guarantees a signature of an endorser of a security warrants that at the time of signing the signature was genuine; the signer was an appropriate person as defined in section 65 to endorse; and the signer had legal capacity to sign. A person who guarantees a signature of an endorser does not otherwise warrant the rightfulness of the particular transfer. A person who guarantees an endorsement of a security warrants both the signature and the rightfulness of the transfer in all respects, but an issuer may not require a guarantee of endorsement as a condition to registration of transfer. The warranties referred to in this section are made to any person taking or dealing with the security relying on the guarantee and the guarantor is liable to such person for any loss resulting from breach of warranty.