§490:3-406  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. [L 1991, c 118, pt of §1]