South Dakota Statutes
§ 57A-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 pers
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South Dakota § 57A-3-406 (Negligence contributing to forged signature or alteration of instrument.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
Related
Dykstra v. National Bank of South Dakota
328 N.W.2d 862 (South Dakota Supreme Court, 1983)
Legislative History
SL 1994, ch 367, § 3-406.
Nearby Sections
15
§ 57A-1-101
Short title.§ 57A-1-102
Scope of chapter.§ 57A-1-104
Construction against implied repeal.§ 57A-1-105
Severability.§ 57A-1-106
Use of singular and plural--Gender.§ 57A-1-107
Section captions.§ 57A-1-201
General definitions.§ 57A-1-202
Notice--Knowledge.§ 57A-1-203
Lease distinguished from security interest.§ 57A-1-204
Value.§ 57A-1-205
Reasonable time--Seasonableness.§ 57A-1-206
Presumptions.§ 57A-1-207
Central bank digital currency.