State Codes and Statutes
Statutes > Virginia > Title-8-3a > Part-4 > 8-3a-406§ 8.3A-406. Negligence contributing to forged signature or alteration ofinstrument.
(a) A person whose failure to exercise ordinary care substantiallycontributes to an alteration of an instrument or to the making of a forgedsignature on an instrument is precluded from asserting the alteration or theforgery against a person who, in good faith, pays the instrument or takes itfor value or for collection.
(b) Under subsection (a), if the person asserting the preclusion fails toexercise ordinary care in paying or taking the instrument and that failuresubstantially contributes to loss, the loss is allocated between the personprecluded and the person asserting the preclusion according to the extent towhich the failure of each to exercise ordinary care contributed to the loss.
(c) Under subsection (a), the burden of proving failure to exercise ordinarycare is on the person asserting the preclusion. Under subsection (b), theburden of proving failure to exercise ordinary care is on the personprecluded.
(1964, c. 219, § 8.3-406; 1992, c. 693.)
