Utah Statutes

§ 70A-3-406 — Negligence contributing to forged signature or alteration of instrument.

Utah·Title 70A Uniform Commercial Code·Ch. 70A-3 Uniform Commercial Code - Negotiable Instruments·Part 70A-3-4 Liability of Parties
(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.
(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.
(3)Under Subsection (1), the burden of proving failure to exercise ordinary care is on the pers

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Related

Check City, Inc. v. L & T Enterprises
2010 UT App 198 (Court of Appeals of Utah, 2010)

Legislative History

Repealed and Re-enacted by Chapter 237, 1993 General Session

Nearby Sections

15
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