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  • SECTION 3-405
    Impostors; Signature in Name of Payee
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  • SECTION 3-407
    Alteration
    • This entry was published on 2014-09-22
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    SECTION 3-406

    Negligence Contributing to Alteration or Unauthorized Signature

    Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 3, PART 4

    Section 3--406. Negligence Contributing to Alteration or Unauthorized

    Signature.

    Any person who by his negligence substantially contributes to a
    material alteration of the instrument or to the making of an
    unauthorized signature is precluded from asserting the alteration or
    lack of authority against a holder in due course or against a drawee or
    other payor who pays the instrument in good faith and in accordance with
    the reasonable commercial standards of the drawee's or payor's business.