Nev. Rev. Stat. » NRS: CHAPTER 104 - UNIFORM COMMERCIAL CODE—ORIGINAL ARTICLES
Nevada Revised Statutes

Nev. Rev. Stat. § 104.3406 (2026)

Negligence contributing to forged signature or alteration of instrument

✓ current as of July 2026
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NRS 104.3406  Negligence contributing to forged signature or alteration of instrument.

      1.  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.

      2.  Under subsection 1, 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.

      3.  Under subsection 1, the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection 2, the burden of proving failure to exercise ordinary care is on the person precluded.

      (Added to NRS by 1965, 828; A 1993, 1280)

     

Notes of Decisions
Cited in 2 cases (1 in the last 5 years), 1995–2021 · leading case: Torino Constr. Corp. v. Ensign Fed. Credit Union, 908 P.2d 702 (Nev. 1995).
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Torino Constr. Corp. v. Ensign Fed. Credit Union, 908 P.2d 702 (Nev. 1995). · cites it 7× “Pursuant to NRS 104.3406, the district court held that Torino was negligent for failing to include the word, “Inc.”
Dog Bites Back, LLC v. JPMorgan Chase Bank, N.A. (D. Nev. 2021). · cites it 6× “3405; (2) violation of NRS 104.3406; 3 (3) breach of contract; (4) breach of the implied covenant of good faith and fair dealing; and (5) 4 negligence.”
Nev. Rev. Stat. § 104.3406(1): 1 case
Dog Bites Back, LLC v. JPMorgan Chase Bank, N.A. (D. Nev. 2021). “3405; (2) violation of NRS 104.3406; 3 (3) breach of contract; (4) breach of the implied covenant of good faith and fair dealing; and (5) 4 negligence.”
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