Wisconsin § 403.406 Negligence contributing to forged signature or alteration of instrument.

Wisconsin Statutes

§ 403.406 — Negligence contributing to forged signature or alteration of instrument.

Wisconsin § 403.406

Ch. 403Uniform commercial code — negotiable instruments

Subch.subch. IV of ch. 403 SUBCHAPTER IV

LIABILITY OF PARTIES

This text of Wisconsin § 403.406 (Negligence contributing to forged signature or alteration of instrument.) is published on Counsel Stack Legal Research, covering Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Wis. Stat. § 403.406 (2026).

Text

403.406 403.406(1) (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. 403.406(2) (2) Under sub.

(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. 403.406(3) (3) Under sub.

(1), the burden of proving failure to exerci

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403.406
403.406(1) (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.
403.406(2) (2) Under sub. (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.
403.406(3) (3) Under sub. (1) , the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under sub. (2) , the burden of proving failure to exercise ordinary care is on the person precluded.