Statute · New York Uniform Commercial Code
N.Y. U.C.C. Law § 3-406 — Negligence Contributing to Alteration or Unauthorized Signature
N.Y. U.C.C. Law § 3-406
- Type
- Statute
- Source
- New York Uniform Commercial Code
- Jurisdiction
- New York
- Current through
- Nov 5, 2026 (NY Senate Open Legislation)
Section 3--406. Negligence Contributing to Alteration or Unauthorized
Citator
N.Y. U.C.C. Law § 3-406 — Negligence Contributing to Alteration or Unauthorized Signature is in force in the current edition of the Code, and nothing recorded condemns it.
Section 3--406. Negligence Contributing to Alteration or Unauthorized
Signature.
Any person who by his negligence substantially contributes to a material alteration of the instrument or to the making of an unauthorized signature is precluded from asserting the alteration or lack of authority against a holder in due course or against a drawee or other payor who pays the instrument in good faith and in accordance with the reasonable commercial standards of the drawee's or payor's business.