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Can you summarize NVRS 104.3406?
Uniform Commercial CodeOriginal Articles > Negligence contributing to forged signature or alteration of instrument.
Short Summary
This provision, found in the Nevada Revised Statutes under the Uniform Commercial CodeOriginal Articles, addresses the issue of negligence contributing to the alteration of an instrument or the forging of a signature on an instrument. According to this provision, a person who fails to exercise ordinary care and thereby 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 this failure contributes to a loss, the loss is allocated between the precluded person and the person asserting the preclusion based on the extent of their respective failures to exercise ordinary care. The burden of proving failure to exercise ordinary care rests on the person asserting the preclusion in the first scenario, and on the person precluded in the second scenario.
Whom does it apply to?
All persons involved in commercial instruments and transactions governed by the Uniform Commercial CodeOriginal Articles in Nevada
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
Nevada