§3-1406. Negligence contributing to forged signature or alteration of instrument
(1). 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.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(2). Under subsection (1), 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.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
(3). Under subsection (1), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (2), the burden of proving failure to exercise ordinary care is on the person precluded.
[PL 1993, c. 293, Pt. A, §2 (NEW).]
SECTION HISTORY
PL 1993, c. 293, §A2 (NEW).
Structure Maine Revised Statutes
TITLE 11: UNIFORM COMMERCIAL CODE
Article 3-A: NEGOTIABLE INSTRUMENTS
11 §3-1402. Signature by representative
11 §3-1403. Unauthorized signature
11 §3-1404. Impostors; fictitious payees
11 §3-1405. Employer's responsibility for fraudulent indorsement by employee
11 §3-1406. Negligence contributing to forged signature or alteration of instrument
11 §3-1408. Drawee not liable on unaccepted draft
11 §3-1409. Acceptance of draft; certified check
11 §3-1410. Acceptance varying draft
11 §3-1411. Refusal to pay cashier's checks, teller's checks and certified checks
11 §3-1412. Obligation of issuer of note or cashier's check
11 §3-1413. Obligation of acceptor
11 §3-1414. Obligation of drawer
11 §3-1415. Obligation of indorser
11 §3-1416. Transfer warranties
11 §3-1417. Presentment warranties
11 §3-1418. Payment or acceptance by mistake