California § 3404. 3404. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6.)

California Statutes

§ 3404. — 3404. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6.)

California·Code COM Commercial Code - COM·Div. 3. DIVISION 3. NEGOTIABLE INSTRUMENTS·Ch. 4. CHAPTER 4. Liability of Parties

(a)If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an indorsement of the instrument by any person in the name of the payee 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.

(b)If (i) a person whose intent determines to whom an instrument is payable (subdivision (a) or (b) of Section 3110) does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules app

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(a)
If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an indorsement of the instrument by any person in the name of the payee 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.
(b)
If (i) a person whose intent determines to whom an instrument is payable (subdivision (a) or (b) of Section 3110) does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special indorsement:
(1)
Any person in possession of the instrument is its holder.
(2)
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.
(c)
Under subdivision (a) or (b), an indorsement is made in the name of a payee if (1) it is made in a name substantially similar to that of the payee or
(2) 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.
(d)
With respect to an instrument to which subdivision (a) or (b) 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 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.

California § 3404. (3404. (Repealed and added by Stats. 1992, Ch. 914, Sec. 6.)) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Margaret Lewis v. Telephone Employees Credit Union Universal Savings Bank Bay View Federal Savings and Loan Association the Bank of America, American Independent Bank Willie Gillyard Mahogany Check Cashing Defendants-Cross-Defendants City National Bank, Defendant-Cross-Claimant-Appellee. Angus G. MacLeod as Personal Representative of the Estate of Jean P. MacLeod v. Willie J. Gillyard Mahogany Check Cashing, Angus G.S. MacLeod as Personal Representative of the Estate of Jean P. MacLeod v. Kodama-Schulman, Inc. George Schulman Doe Kodama Doe Oswalt Doe 1 A/K/A "Ira Singerman" Willie T. Gillyard Mahogany Check Cashing American Independent Bank Glendale Federal Bank Sumitomo Bank of California Federal Home Loan Bank

87 F.3d 1537 (Ninth Circuit, 1996)

Legislative History

Repealed and added by Stats. 1992, Ch. 914, Sec. 6. Effective January 1, 1993.

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Legislative History