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Georgia State Code
Title      11
Chapter       3  
Section Navigation   101 ... 110       111 ... 201   
   202 ... 304       305 ... 402   
     403 ... 412       413 ... 502   
   503 ... 605     
Section<<< 403 404 405 406 407 408 409 410 411 412 >>>  
Title 11, Chapter 3, Section 406 (11-3-406)
Negligence contributing to forged signature or alteration of instrument.

(a) A person whose failure to exercise ordinary care substantially contributes to an alteration of an instrument or to the making of a forged signature on an instrument is precluded from asserting the alteration or the forgery against a person who, in good faith, pays the instrument or takes it for value or for collection.

(b) Under subsection (a) of this Code section, if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss.

(c) Under subsection (a) of this Code section, the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (b) of this Code section, the burden of proving failure to exercise ordinary care is on the person precluded.

Saturday May 23 17:13 EDT


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