Okla. Stat. tit. 12A, § 12A-3-404
This is the official text of Okla. Stat. tit. 12A, § 12A-3-404, part of Oklahoma’s Stat. tit. 12A, — part of the compiled statutory law of Oklahoma, published by the state as "Stat. tit. 12A,." Browse the sections below, each linked to its official government source.
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Impostors; Fictitious Payees
Official statutory text
IMPOSTORS; FICTITIOUS PAYEES
(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
Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 308
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 (subsection (a) or (b) of Section 3-110 of
this title) 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; and
(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.
(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
Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 308
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 (subsection (a) or (b) of Section 3-110 of
this title) 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; and
(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.
Status: in_force · Read it on the official government site
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