3406 - Negligence contributing to forged signature or alteration of instrument.

     § 3406.  Negligence contributing to forged signature or                alteration of instrument.        (a)  Failure to exercise ordinary care.--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)  Allocation of loss.--Under subsection (a), 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)  Burden of proof.--Under subsection (a), the burden of     proving failure to exercise ordinary care is on the person     asserting the preclusion. Under subsection (b), the burden of     proving failure to exercise ordinary care is on the person     precluded.        Cross References.  Section 3406 is referred to in sections     3417, 4208 of this title.