Source: L. 94: Entire article R&RE, p. 863, § 1, effective January 1, 1995.
Editor's note: This section is similar to former § 4-3-404 as it existed prior to 1994.
Ratification is effective for all purposes of this Article. The unauthorized signature becomes valid so far as its effect as a signature is concerned. Although the ratification may relieve the signer of liability on the instrument, it does not of itself relieve the signer of liability to the person whose name is signed. It does not in any way affect the criminal law. No policy of the criminal law prevents a person whose name is forged to assume liability to others on the instrument by ratifying the forgery, but the ratification cannot affect the rights of the state. While the ratification may be taken into account with other relevant facts in determining punishment, it does not relieve the signer of criminal liability.
Subsection (b) refers to "the authorized signature of an organization." The definition of "organization" in Section 1-201(28) is very broad. It covers not only commercial entities but also "two or more persons having a joint or common interest." Hence subsection (b) would apply when a husband and wife are both required to sign an instrument.
Structure Colorado Code
Title 4 - Uniform Commercial Code
Article 3 - Negotiable Instruments
§ 4-3-402. Signature by Representative
§ 4-3-403. Unauthorized Signature
§ 4-3-404. Impostors; Fictitious Payees
§ 4-3-405. Employer's Responsibility for Fraudulent Indorsement by Employee
§ 4-3-406. Negligence Contributing to Forged Signature or Alteration of Instrument
§ 4-3-408. Drawee Not Liable on Unaccepted Draft
§ 4-3-409. Acceptance of Draft; Certified Check
§ 4-3-410. Acceptance of Varying Draft
§ 4-3-411. Refusal to Pay Cashier's Checks, Teller's Checks, and Certified Checks
§ 4-3-412. Obligation of Issuer of Note or Cashier's Check
§ 4-3-413. Obligation of Acceptor
§ 4-3-414. Obligation of Drawer
§ 4-3-415. Obligation of Indorser
§ 4-3-416. Transfer Warranties
§ 4-3-417. Presentment Warranties
§ 4-3-418. Payment or Acceptance by Mistake