Vermont § 404 - § 3—404.
Full text of Vermont Vermont Statutes Online § 404 — § 3—404., with citation guidance and answers to common questions.
§ 404. § 3—404.
- Impostors; fictitious payees (a) 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 indorsement of the instrument by any person in the name of the payee
is effective as the indorsement of the payee in favor of a person who, in good faith,
pays the instrument or takes it for value or for collection. (b) If (i) a person whose intent determines to whom an instrument is payable (§ 3—110(a) or (b)) does not intend the person identified as payee to have any interest in the instrument, or (ii) the person identified as payee of an instrument is a fictitious person, the following rules apply until the instrument is negotiated by special indorsement: (1) Any person in possession of the instrument is its holder. (2) An indorsement by any person in the name of the payee stated in the instrument is
effective as the indorsement of the payee in favor of a person who, in good faith,
pays the instrument or takes it for value or for collection. (c) Under subsection (a) or (b) of this section, an indorsement is made in the name of
a payee if (i) it is made in a name substantially similar to that of the payee or
(ii) the instrument, whether or not indorsed, is deposited in a depositary bank to
an account in a name substantially similar to that of the payee. (d) With respect to an instrument to which subsection (a) or (b) of this section 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. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)
Frequently Asked Questions About Vermont § 404
What does Vermont Statutes Online § 404 cover?
Section 404 ("§ 3—404.") is part of the Vermont Statutes Online, the codified statutory law of Vermont. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Vermont § 404?
A common citation format is "Vermont Statutes Online § 404" (Vermont). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Vermont law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Vermont official source linked on this page or consult a licensed Vermont attorney.
How does Vermont § 404 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Vermont can advise on how this section applies to you. Contact your state or local bar association for a referral.
Sources & Verification
Not legal advice. Verify against the official source and consult a licensed attorney in Vermont.