§ 3405. Employer's responsibility for fraudulent indorsement by employee
Purdon's Pennsylvania Statutes and Consolidated StatutesTitle 13 Pa.C.S.A. Commercial Code
13 Pa.C.S.A. § 3405
§ 3405. Employer's responsibility for fraudulent indorsement by employee
“Employee.” Includes an independent contractor and employee of an independent contractor retained by the employer.
“Fraudulent indorsement.”
“Responsibility.” With respect to instruments means authority:
The term does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail or similar access.
(b) Rights and liabilities.--For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent indorsement of the instrument, the indorsement is effective as the indorsement of the person to whom the instrument is payable if it is made in the name of that person. If the person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from the fraud, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss.
Credits
1992, July 9, P.L. 507, No. 97, § 5, effective in one year.
13 Pa.C.S.A. § 3405, PA ST 13 Pa.C.S.A. § 3405
Current through Act 11 of the 2024 Regular Session. Some statute sections may be more current, see credits for details.
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