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Negligence contributing to forged signature or alteration of instrument - 13 Pa. Cons. Stat. § 3406

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     § 3406.  Negligence contributing to forged signature or
                alteration of instrument.
        (a)  Failure to exercise ordinary care.--A person whose
     failure to exercise ordinary care substantially contributes to
     an alteration of an instrument or to the making of a forged
     signature on an instrument is precluded from asserting the
     alteration or the forgery against a person who, in good faith,
     pays the instrument or takes it for value or for collection.
        (b)  Allocation of loss.--Under subsection (a), if the person
     asserting the preclusion fails to exercise ordinary care in
     paying or taking the instrument and that failure substantially
     contributes to loss, the loss is allocated between the person
     precluded and the person asserting the preclusion according to
     the extent to which the failure of each to exercise ordinary
     care contributed to the loss.
        (c)  Burden of proof.--Under subsection (a), the burden of
     proving failure to exercise ordinary care is on the person
     asserting the preclusion. Under subsection (b), the burden of
     proving failure to exercise ordinary care is on the person
     precluded.

        Cross References.  Section 3406 is referred to in sections
     3417, 4208 of this title.

Last modified: November 27, 2007