Minnesota Legislature
Office of the Revisor of Statutes
2007 Minnesota Statutes
This is an historical version of this statute chapter. Also view the most recent published version.
336.3-406 MS 1990 [Repealed, 1992 c 565 s 114]
336.3-406 NEGLIGENCE CONTRIBUTING TO FORGED SIGNATURE OR
ALTERATION OF INSTRUMENT.
(a) 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) 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) 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.
History: 1992 c 565 s 46
336.3-406 NEGLIGENCE CONTRIBUTING TO FORGED SIGNATURE OR
ALTERATION OF INSTRUMENT.
(a) 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) 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) 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.
History: 1992 c 565 s 46
Official Publication of the State of Minnesota
Revisor of Statutes