Nebraska Uniform Commercial Code 3-403

UCC 3-403

3-403.

Unauthorized signature.

(a) Unless otherwise provided in this article or article 4, 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 article.

(b) 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.

(c) The civil or criminal liability of a person who makes an unauthorized signature is not affected by any provision of this article which makes the unauthorized signature effective for the purposes of this article.

Annotations

  • Under former section 3-403, one ratifies and authorizes a signature by acknowledging the debt and making payments without objection as to the signature. Richards v. Arthaloney, 216 Neb. 11, 342 N.W.2d 642 (1983).

  • Under former section 3-404, unauthorized signature by general manager did not make company liable on note and it could not recover on fidelity bond when it paid the note to avoid losing a good customer. KAMI Kountry Broadcasting Co. v. United States F. & G. Co., 190 Neb. 330, 208 N.W.2d 254 (1973).

  • Under former section 3-405, fact that endorsement by imposter is effective does not relieve him of criminal liability. State v. Kirby, 187 Neb. 380, 191 N.W.2d 162 (1971).

  • Under former section 3-404, unauthorized signature inoperative as that of person whose name is signed. Farmers Union Coop Assn. v. Commercial State Bank of Cedar Bluffs, 187 Neb. 376, 191 N.W.2d 168 (1971).