- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 3. Negotiable Instruments
- Section 405. Employer's Responsibility For Fraudulent Endorsement By Employee.
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. Impostors; Fictitious Payees.
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. Negligence Contributing to Forged Signature or Alteration of Instrument.
AS 45.03.405. Employer's Responsibility For Fraudulent Endorsement By Employee.
- (a) 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 endorsement of the instrument, the
endorsement is effective as the endorsement 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.
- (b) Under (a) of this section, an endorsement is made in the name of the person to whom an instrument is payable if
- (1) it is made in a name substantially similar to the name of that person; or
- (2) the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially
similar to the name of that person.
- (c) In this section,
- (1) "employee" includes an independent contractor and an employee of an independent contractor retained by the employer;
- (2) "fraudulent endorsement" means
- (A) in the case of an instrument payable to the employer, a forged endorsement purporting to be that of the employer; or
- (B) in the case of an instrument with respect to which the employer is the issuer, a forged endorsement purporting to be
that of the person identified as payee;
- (3) "responsibility" with respect to instruments means authority to sign or endorse instruments on behalf of the employer;
to process instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other
disposition; to prepare or process instruments for issue in the name of the employer; to supply information determining
the names or addresses of payees of instruments to be issued in the name of the employer; to control the disposition of
instruments to be issued in the name of the employer; or 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
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