(2) If a person whose intent determines to whom an instrument is payable under ORS 73.0110 (1) or (2) does not intend the person identified as payee to have any interest in the instrument or the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special indorsement:
(a) Any person in possession of the instrument is its holder.
(b) An indorsement by any person in the name of the payee stated in the instrument is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(3) Under subsection (1) or (2) of this section, an indorsement is made in the name of a payee if:
(a) It is made in a name substantially similar to that of the payee; or
(b) The instrument, whether or not indorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.
(4) With respect to an instrument to which subsection (1) or (2) of this section applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss. [1993 c.545 §45]
Structure 2021 Oregon Revised Statutes
Volume : 02 - Business Organizations, Commercial Code
Chapter 073 - Negotiable Instruments
Section 73.0102 - Application of chapter.
Section 73.0103 - Definitions.
Section 73.0104 - Negotiable instrument; other definitions.
Section 73.0105 - Issue of instrument.
Section 73.0106 - Unconditional promise or order.
Section 73.0108 - Payable on demand or at definite time.
Section 73.0109 - Payable to bearer or to order.
Section 73.0110 - Identification of person to whom instrument is payable.
Section 73.0113 - Date of instrument.
Section 73.0115 - Incomplete instrument.
Section 73.0116 - Joint and several liability; contribution.
Section 73.0118 - Statute of limitations.
Section 73.0201 - Negotiation.
Section 73.0202 - Negotiation subject to rescission.
Section 73.0203 - Transfer of instrument; rights acquired by transfer.
Section 73.0204 - Indorsement.
Section 73.0205 - Special indorsement; blank indorsement; anomalous indorsement.
Section 73.0206 - Restrictive indorsement.
Section 73.0302 - Holder in due course.
Section 73.0303 - Value and consideration.
Section 73.0304 - Overdue instrument.
Section 73.0305 - Defenses and claims in recoupment.
Section 73.0307 - Notice of breach of fiduciary duty.
Section 73.0308 - Proof of signatures and status as holder in due course.
Section 73.0309 - Enforcement of lost, destroyed or stolen instrument.
Section 73.0310 - Effect of instrument on obligation for which taken.
Section 73.0312 - Lost, destroyed or stolen cashier’s check, teller’s check or certified check.
Section 73.0402 - Signature by representative.
Section 73.0403 - Unauthorized signature.
Section 73.0404 - Impostors; fictitious payees.
Section 73.0405 - Employer’s responsibility for fraudulent indorsement by employee.
Section 73.0406 - Negligence contributing to forged signature or alteration of instrument.
Section 73.0409 - Acceptance of draft; certified check.
Section 73.0410 - Acceptance varying draft.
Section 73.0411 - Refusal to pay cashier’s checks, teller’s checks and certified checks.
Section 73.0413 - Obligation of acceptor.
Section 73.0414 - Obligation of drawer.
Section 73.0415 - Obligation of indorser.
Section 73.0416 - Transfer warranties.
Section 73.0417 - Presentment warranties.
Section 73.0418 - Payment or acceptance by mistake.
Section 73.0419 - Instruments signed for accommodation.
Section 73.0420 - Conversion of instrument.
Section 73.0501 - Presentment.
Section 73.0503 - Notice of dishonor.
Section 73.0504 - Excused presentment and notice of dishonor.
Section 73.0505 - Evidence of dishonor.
Section 73.0601 - Discharge and effect of discharge.
Section 73.0603 - Tender of payment.
Section 73.0604 - Discharge by cancellation or renunciation.
Section 73.0605 - Discharge of indorsers and accommodation parties.