(a) If an impostor, by use of the mails or otherwise, induces the issuer of an instrument to issue the instrument to the impostor, or to a person acting in concert with the impostor, by impersonating the payee of the instrument or a person authorized to act for the payee, an indorsement of the instrument by any person in the name of the payee is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(b) If (i) a person whose intent determines to whom an instrument is payable (G.S. 25-3-110(a) or (b)) does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special indorsement:
(1) Any person in possession of the instrument is its holder.
(2) An indorsement by any person in the name of the payee stated in the instrument is effective as the indorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or for collection.
(c) Under subsection (a) or (b) of this section, an indorsement is made in the name of a payee if (i) it is made in a name substantially similar to that of the payee or (ii) the instrument, whether or not indorsed, is deposited in a depositary bank to an account in a name substantially similar to that of the payee.
(d) With respect to an instrument to which subsection (a) or (b) of this section applies, if a person paying the instrument or taking it for value or for collection fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss resulting from payment of the instrument, the person bearing the loss may recover from the person failing to exercise ordinary care to the extent the failure to exercise ordinary care contributed to the loss. (1899, c. 733, s. 9; Rev., s. 2159; C.S., s. 2990; 1949, c. 953; 1965, c. 700, s. 1; 1995, c. 232, s. 1.)
Notes of Decisions
O'Grady v. First Union Nat'l Bank, 250 S.E.2d 587 (N.C. 1978).
· cites it 2× “And though Pridemore is not liable to the bank by virtue of his unauthorized signature under G.S. 25-3-404(1) since the bank took the note with notice that the signature was unauthorized, cf.”
Leiber v. Arboretum Jt. Venture, LLC, 702 S.E.2d 805 (N.C. Ct. App. 2010).
· cites it 2× “N.C. Gen. Stat. § 25-3-404 (a) (2009). Wachovia Bank contends that by “forging [Plaintiffs] signature on the redemption agreements, Spreti impersonated Plaintiff.”
First Investors Corp. v. Citizens Bank, Inc., 757 F. Supp. 687 (W.D.N.C. 1991).
· cites it 2× “§ 25-3-106; that First Investors cloaked Brooks with “apparent authority” to act as she did; and, that the Defendant Bank at all times acted in good faith and in accordance with reasonable commercial standards and is therefore liable only to the extent of any funds remaining in…”
Williams v. Metro. Life Ins., 367 F. Supp. 2d 844 (M.D.N.C. 2005).
· cites it 16× “§ 25-4— 401, and granted as to plaintiffs claims for punitive damages, unfair and deceptive trade practices, and a violation of N.C. Gen.Stat. § 25-3-404. RECOMMENDATION OF MAGISTRATE JUDGE ELIASON ELIASON, United States Magistrate Judge.”
— N.C. Gen. Stat. § 25-3-404(1) — 1 case
O'Grady v. First Union Nat'l Bank, 250 S.E.2d 587 (N.C. 1978).
“And though Pridemore is not liable to the bank by virtue of his unauthorized signature under G.S. 25-3-404(1) since the bank took the note with notice that the signature was unauthorized, cf.”
— N.C. Gen. Stat. § 25-3-404(2) — 1 case
O'Grady v. First Union Nat'l Bank, 250 S.E.2d 587 (N.C. 1978).
“And though Pridemore is not liable to the bank by virtue of his unauthorized signature under G.S. 25-3-404(1) since the bank took the note with notice that the signature was unauthorized, cf.”
— N.C. Gen. Stat. § 25-3-404(b) — 1 case
Williams v. Metro. Life Ins., 367 F. Supp. 2d 844 (M.D.N.C. 2005).
“§ 25-4— 401, and granted as to plaintiffs claims for punitive damages, unfair and deceptive trade practices, and a violation of N.C. Gen.Stat. § 25-3-404. RECOMMENDATION OF MAGISTRATE JUDGE ELIASON ELIASON, United States Magistrate Judge.”
— N.C. Gen. Stat. § 25-3-404(b)(i) — 1 case
Williams v. Metro. Life Ins., 367 F. Supp. 2d 844 (M.D.N.C. 2005).
“§ 25-4— 401, and granted as to plaintiffs claims for punitive damages, unfair and deceptive trade practices, and a violation of N.C. Gen.Stat. § 25-3-404. RECOMMENDATION OF MAGISTRATE JUDGE ELIASON ELIASON, United States Magistrate Judge.”
— N.C. Gen. Stat. § 25-3-404(b)(ii) — 1 case
Williams v. Metro. Life Ins., 367 F. Supp. 2d 844 (M.D.N.C. 2005).
“§ 25-4— 401, and granted as to plaintiffs claims for punitive damages, unfair and deceptive trade practices, and a violation of N.C. Gen.Stat. § 25-3-404. RECOMMENDATION OF MAGISTRATE JUDGE ELIASON ELIASON, United States Magistrate Judge.”
Annotations are extracted automatically from the opinions in the
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