Tennessee § 47-3-403 - Unauthorized signature.

§ 47-3-403. Unauthorized signature.

Unless otherwise provided in this chapter or chapter 4 of this title, an unauthorized signature is ineffective except as the signature of the unauthorized signer in favor of a person who in good faith pays the instrument or takes it for value. An unauthorized signature may be ratified for all purposes of this chapter. If the signature of more than one person is required to constitute the authorized signature of an organization, the signature of the organization is unauthorized if one of the required signatures is lacking. The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this chapter which makes the unauthorized signature effective for the purposes of this chapter. Acts 1995, ch. 397, § 2. Prior Tennessee Law: §§ 47-123, 47-3-404. Textbooks. Tennessee Jurisprudence, 6 Tenn. Juris., Commercial Law, § 69; 13 Tenn. Juris., Forgery and Counterfeiting, § 13. Law Reviews. Negotiable Instruments — Liability for Paying on a Forged Signature — Duty to Examine Bank Statement, 34 Tenn. L. Rev. 320. Cited: McLemore v. Powell, 968 S.W.2d 799, 1997 Tenn. App. LEXIS 541 (Tenn. Ct. App. 1997); McNaughten v. Lunan, — S.W.3d —, 2010 Tenn. App. LEXIS 334 (Tenn. Ct. App. May 14, 2010).