Ohio § 1303.47

§ 1303.47.

(A) As used in this section: (1) “ Employee ” includes an independent contractor and an employee of an independent contractor

retained by the employer. (2) “ Fraudulent indorsement ” means either of the following: (a) In the case of an instrument payable to the employer, a forged indorsement purporting

to be that of the employer; (b) In the case of an instrument with respect to which the employer is the issuer, a

forged indorsement purporting to be that of the person identified as payee. (3) “Responsibility” with respect to instruments means authority to do any of the following: (a) To sign or indorse instruments on behalf of the employer; (b) To process instruments received by the employer for bookkeeping purposes, for deposit

to an account, or for other disposition; (c) To prepare or process instruments for issue in the name of the employer; (d) To supply information determining the names or addresses of payees of instruments

to be issued in the name of the employer; (e) To control the disposition of instruments to be issued in the name of the employer; (f) To act otherwise with respect to instruments in a responsible capacity. “Responsibility” with respect to instruments 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 similar access. (B) 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 indorsement of

the instrument, the indorsement is effective as the indorsement 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. (C) Under division (B) of this section, an indorsement is made in the name of the person

to whom an instrument is payable if it is made in a name substantially similar to

the name of that person or if the instrument, whether or not indorsed, is deposited

in a depositary bank to an account in a name substantially similar to the name of

that person.