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Can you summarize NHRS 382-A:3-405?
UNIFORM COMMERCIAL CODE > Employer's Responsibility for Fraudulent Indorsement by Employee.
Short Summary
This section of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code (Chapter 382-A), addresses the responsibility of employers for fraudulent indorsement by their employees. The section defines key terms such as ’employee’ and ‘fraudulent indorsement’. It states that if an employer entrusts an employee with responsibility for an instrument and the employee or someone acting with them makes a fraudulent indorsement, the indorsement is effective as if made by the person to whom the instrument is payable. However, if the person paying or taking the instrument fails to exercise ordinary care and this contributes to the loss resulting from the fraud, they may be held liable for the loss. The section also provides criteria for determining when an indorsement is made in the name of the person to whom the instrument is payable. No specific penalties are mentioned in this section.
Whom does it apply to?
Employers and employees
What does it govern?
Employer's responsibility for fraudulent indorsement by employee
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
New Hampshire