Louisiana Statutes
§ 10:3-406 — Negligence contributing to forged signature or alteration of instrument
Louisiana § 10:3-406
JurisdictionLouisiana
Title 10Commercial Laws
This text of Louisiana § 10:3-406 (Negligence contributing to forged signature or alteration of instrument) is published on Counsel Stack Legal Research, covering Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Bluebook
La. Stat. Ann. § 10:3-406 (2026).
Text
(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 pers
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Related
Marx v. Whitney Nat. Bank
713 So. 2d 1142 (Supreme Court of Louisiana, 1998)
Lincoln National Bank & Trust Company v. The Bank of Commerce, New York Life Insurance Company v. The Bank of Commerce
764 F.2d 392 (Fifth Circuit, 1985)
Webb Carter Construction Company, Inc. v. Louisiana Central Bank
922 F.2d 1197 (Fifth Circuit, 1991)
LaCombe v. Bank One Corp.
953 So. 2d 161 (Louisiana Court of Appeal, 2007)
Curtis v. HIBERNIA NAT. BANK IN JEFFERSON
522 So. 2d 705 (Louisiana Court of Appeal, 1988)
American Turbine Technology, Inc. v. Omni Bancshares, Inc.
222 So. 3d 189 (Louisiana Court of Appeal, 2017)
Parish National Bank v. Ott
817 So. 2d 295 (Louisiana Court of Appeal, 2002)
Legislative History
Acts 1992, No. 1133, §3, eff. July 1, 1993; Acts 1993, No. 948, §10, eff. Jan. 1, 1994.
Nearby Sections
15
§ 10:3-101
§ 10:3-101§ 10:3-102
Subject matter§ 10:3-103
Definitions§ 10:3-104
Negotiable instrument§ 10:3-105
Issue of instrument§ 10:3-106
Unconditional promise or order§ 10:3-107
Instrument payable in foreign money§ 10:3-108
Payable on demand or at definite time§ 10:3-109
Payable to bearer or to order§ 10:3-111
Place of payment§ 10:3-112
Interest§ 10:3-113
Date of instrument§ 10:3-114
Contradictory terms of instrument§ 10:3-115
Incomplete instrumentCite This Page — Counsel Stack
Bluebook (online)
Louisiana § 10:3-406, Counsel Stack Legal Research, https://law.counselstack.com/statute/la/10%3A3-406.