84-3-406. Negligence contributing to forged signature or alteration of instrument. (a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.
(b) Under subsection (a), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.
(c) Under subsection (a), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (b), the burden of proving failure to exercise ordinary care is on the person precluded.
History: L. 1991, ch. 296, ยง 43; Feb. 1, 1992.
Structure Kansas Statutes
Chapter 84 - Uniform Commercial Code
Article 3 - Negotiable Instruments
84-3-104 Negotiable instrument.
84-3-106 Unconditional promise or order.
84-3-107 Instrument payable in foreign money.
84-3-108 Payable on demand or at a definite time.
84-3-109 Payable to bearer or to order.
84-3-110 Identification of person to whom instrument is payable.
84-3-114 Contradictory terms of instrument.
84-3-115 Incomplete instrument.
84-3-116 Joint and several liability; contribution.
84-3-117 Other agreements affecting instrument.
84-3-118 Statute of limitations.
84-3-119 Notice of right to defend action.
84-3-202 Negotiation subject to rescission.
84-3-203 Transfer of instrument; rights acquired by transfer.
84-3-205 Special endorsement; blank endorsement; anomalous endorsement.
84-3-206 Restrictive endorsement.
84-3-301 Person entitled to enforce instrument.
84-3-302 Holder in due course.
84-3-303 Value and consideration.
84-3-305 Defenses and claims in recoupment.
84-3-306 Claims to an instrument.
84-3-307 Notice of breach of fiduciary duty.
84-3-308 Proof of signatures and status as holder in due course.
84-3-309 Enforcement of lost, destroyed or stolen instrument.
84-3-310 Effect of instrument on obligation for which taken.
84-3-311 Accord and satisfaction by use of instrument.
84-3-312 Lost, destroyed or stolen cashier's check, teller's check or certified check.
84-3-402 Signature by representative.
84-3-403 Unauthorized signature.
84-3-404 Impostors; fictitious payees.
84-3-405 Employer's responsibility for fraudulent endorsement by employee.
84-3-406 Negligence contributing to forged signature or alteration of instrument.
84-3-408 Drawee not liable on unaccepted draft.
84-3-409 Acceptance of draft; certified check.
84-3-410 Acceptance varying draft.
84-3-411 Refusal to pay cashier's checks, teller's checks and certified checks.
84-3-412 Obligation of issuer of note or cashier's check.
84-3-413 Obligation of acceptor.
84-3-414 Obligation of drawer.
84-3-415 Obligation of endorser.
84-3-417 Presentment warranties.
84-3-418 Payment or acceptance by mistake.
84-3-419 Instrument signed for accommodation.
84-3-420 Conversion of instrument.
84-3-504 Excused presentment and notice of dishonor.
84-3-505 Evidence of dishonor.
84-3-601 Discharge and effect of discharge.