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Can you summarize NVRS 104.3405?
Uniform Commercial CodeOriginal Articles > Employers responsibility for fraudulent endorsement by employee.
Short Summary
This section of the Nevada Revised Statutes, under the Uniform Commercial CodeOriginal Articles, addresses the responsibility of employers for fraudulent endorsements made by their employees. The definition of ’employee’ includes independent contractors and employees of independent contractors retained by the employer. ‘Fraudulent endorsement’ refers to forged endorsements purporting to be that of the employer or the person identified as payee. ‘Responsibility’ with respect to instruments includes various authorities related to signing, endorsing, acting upon, preparing, supplying information, controlling disposition, or acting in a responsible capacity. However, it does not include authority that merely allows access to instruments or blank/incomplete instrument forms. If an employer entrusted an employee with responsibility for an instrument and the employee or someone acting with them makes a fraudulent endorsement, the endorsement is effective as if made by the person to whom the instrument is payable. If the person paying or taking the instrument fails to exercise ordinary care and contributes to the loss resulting from the fraud, they may be held liable. The section also provides criteria for determining if an endorsement is made in the name of the person to whom the instrument is payable.
Whom does it apply to?
Employers and employees involved in commercial transactions
What does it govern?
Employers responsibility for fraudulent endorsement by employee
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Nevada