N.Y. Uniform Commercial Code 3-406 – Negligence Contributing to Alteration or Unauthorized Signature
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Section 3–406. Negligence Contributing to Alteration or Unauthorized
Terms Used In N.Y. Uniform Commercial Code 3-406
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
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.