Nevada § 104.3404 - Impostors; fictitious payees

§ 104.3404. Impostors; fictitious payees

1. If an impostor, by use of the mails or otherwise, induces the issuer of an instrument

to issue the instrument to the impostor, or to 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 for collection. 2. If a person whose intent determines to whom an instrument is payable (subsection

1 or 2 of NRS 104.3110 ) does not intend the person identified as payee to have any interest in the instrument,

or the person identified as payee of an instrument is a fictitious person, the following

rules apply until the instrument is negotiated by special endorsement: (a) Any person in possession of the instrument is its holder. (b) 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. 3. Under subsection 1 or 2, an endorsement is made in the name of a payee if it is

made in a name substantially similar to that of the payee or 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. 4. With respect to an instrument to which subsection 1 or 2 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 the loss.