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Can you summarize NHRS 382-A:3-404?
UNIFORM COMMERCIAL CODE > Impostors; Fictitious Payees.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, addresses the issue of impostors and fictitious payees in relation to instruments. It states that if an impostor induces the issuer of an instrument to issue it to the impostor or a person acting with the impostor by impersonating the payee or an authorized person, an endorsement of the instrument by any person in the name of the payee is effective as the endorsement of the payee in favor of a person who pays the instrument or takes it in good faith. If the person who determines to whom the instrument is payable does not intend the identified payee to have any interest in the instrument or if the payee is fictitious, certain rules apply until the instrument is negotiated by special endorsement. These rules state that any person in possession of the instrument is its holder, and an endorsement in the name of the payee stated in the instrument is effective in favor of a person who pays the instrument or takes it in good faith. The document also specifies the conditions under which an endorsement is considered to be made in the name of the payee. Additionally, it outlines the potential liability of a person who fails to exercise ordinary care in paying or taking the instrument, which contributes to a loss resulting from the payment. The document does not mention any specific penalties or exemptions.
Whom does it apply to?
Issuers of instruments, persons acting in concert with impostors, payees, persons who pay or take the instrument for value or collection
What does it govern?
Impostors; Fictitious Payees
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Hampshire