N.Y. Uniform Commercial Code 3-405 – Impostors; Signature in Name of Payee
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Section 3–405. Impostors; Signature in Name of Payee.
Terms Used In N.Y. Uniform Commercial Code 3-405
- Instrument: means a negotiable instrument. See N.Y. Uniform Commercial Code 3-102
- Issue: means the first delivery of an instrument to a holder
or a remitter. See N.Y. Uniform Commercial Code 3-102
(1) An indorsement by any person in the name of a named payee is effective if
(a) an impostor by use of the mails or otherwise has induced the
maker or drawer to issue the instrument to him or his
confederate in the name of the payee; or
(b) a person signing as or on behalf of a maker or drawer intends
the payee to have no interest in the instrument; or
(c) an agent or employee of the maker or drawer has supplied him
with the name of the payee intending the latter to have no
such interest.
(2) Nothing in this section shall affect the criminal or civil liability of the person so indorsing.