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Can you summarize MNST 336.3-406?
UNIFORM COMMERCIAL CODE > NEGLIGENCE CONTRIBUTING TO FORGED SIGNATURE OR ALTERATION OF INSTRUMENT.
Short Summary
This legal provision, under the Minnesota Statutes, specifically under the Trade Regulations and Consumer Protection section of the Uniform Commercial Code, addresses the issue of negligence contributing to the alteration of an instrument or the making of a forged signature on an instrument. According to this provision, a person who fails to exercise ordinary care and substantially contributes to such alteration or forgery cannot assert the alteration or forgery against a person who, in good faith, pays the instrument or takes it for value or for collection. If the person asserting the preclusion also fails to exercise ordinary care and contributes to the loss, the loss is allocated between the precluded person and the person asserting the preclusion based on their respective failures to exercise ordinary care. The burden of proving failure to exercise ordinary care lies with the person asserting the preclusion. This provision was repealed in 1992.
Whom does it apply to?
Persons involved in the alteration of an instrument or the making of a forged signature on an instrument
What does it govern?
Negligence contributing to forged signature or alteration of instrument
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Minnesota