Okla. Stat. tit. 12A, § 12A-3-405

Employee.

EMPLOYER'S RESPONSIBILITY FOR FRAUDULENT

INDORSEMENT BY EMPLOYEE

(a) In this section:

(1) "Employee" includes an independent contractor and

employee of an independent contractor retained by the

employer;

(2) "Fraudulent indorsement" means (i) in the case of an

instrument payable to the employer, a forged

indorsement purporting to be that of the employer, or

(ii) in the case of an instrument with respect to

which the employer is the issuer, a forged indorsement

purporting to be that of the person identified as

payee; and

Oklahoma Statutes - Title 12A. Uniform Commercial Code Page 309

(3) "Responsibility" with respect to instruments means

authority (i) to sign or indorse instruments on behalf

of the employer, (ii) to process instruments received

by the employer for bookkeeping purposes, for deposit

to an account, or for other disposition, (iii) to

prepare or process instruments for issue in the name

of the employer, (iv) to supply information

determining the names or addresses of payees of

instruments to be issued in the name of the employer,

(v) to control the disposition of instruments to be

issued in the name of the employer, or (vi) to act

otherwise with respect to instruments in a responsible

capacity. "Responsibility" does not include authority

that merely allows an employee to have access to

instruments or blank or incomplete instrument forms

that are being stored or transported or are part of

incoming or outgoing mail, or similar access.

(b) For the purpose of determining the rights and liabilities

of a person who, in good faith, pays an instrument or takes it for

value or for collection, if an employer entrusted an employee with

responsibility with respect to the instrument and the employee or a

person acting in concert with the employee makes a fraudulent

indorsement of the instrument, the indorsement is effective as the

indorsement of the person to whom the instrument is payable if it is

made in the name of that person. If the 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 the fraud,

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.

(c) Under subsection (b) of this section, an indorsement is

made in the name of the person to whom an instrument is payable if

(i) it is made in a name substantially similar to the name of that

person or (ii) the instrument, whether or not indorsed, is deposited

in a depositary bank to an account in a name substantially similar

to the name of that person.