- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 3. Negotiable Instruments
- Section 404. Impostors; Fictitious Payees.
previous: Section 403
. Unauthorized Signature.
next: Section 405
. Employer's Responsibility For Fraudulent Endorsement By Employee.
AS 45.03.404. 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 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 endorsement of the instrument by any person in the name of the payee is effective
as the endorsement of the payee in favor of a person who, in good faith, pays the instrument or takes it for value or
- (b) If a person whose intent determines to whom an instrument is payable (AS 45.03.110
(a) or (b)) does not intend the person identified as payee to have an interest in the instrument, or if the person
identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is
negotiated by special endorsement:
- (1) any person in possession of the instrument is the holder of the instrument; and
- (2) an endorsement by any person in the name of the payee stated in the instrument is effective as the endorsement 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 (a) or (b) of this section, an endorsement is made in the name of a payee if
- (1) it is made in a name substantially similar to that of the payee; or
- (2) the instrument, whether or not endorsed, 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 (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
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