impostor rule

impostor rule
Under Uniform Commercial Code, Article 3, Sect. 404(a), a rule stating that if an impostor endorses a negotiable instrument and receives payment in good faith, the drawer of the instrument is responsible for the loss. An example would be if an individual impersonates a person for whom a check has been cut or misrepresents himself as that person's agent. If the impostor receives the check, endorses it, and cashes it at the drawer's bank, the drawer is responsible for the loss, because the bank accepted the endorsement in good faith. The bank may be responsible for a percentage of the loss if it failed to exercise "ordinary care"; for example, if the bank did not check the impostor's identification. The imposter rule is based on the assumption that between the bank and the drawer, the drawer is in a better position to prevent the loss. Also spelled imposter rule.

Dictionary from West's Encyclopedia of American Law. 2005.


impostor rule
Under Uniform Commercial Code, Article 3, Sect. 404(a), a rule stating that if an impostor endorses a negotiable instrument and receives payment in good faith, the drawer of the instrument is responsible for the loss. An example would be if an individual impersonates a person for whom a check has been cut or misrepresents himself as that person's agent. If the impostor receives the check, endorses it, and cashes it at the drawer's bank, the drawer is responsible for the loss, because the bank accepted the endorsement in good faith. The bank may be responsible for a percentage of the loss if it failed to exercise "ordinary care"; for example, if the bank did not check the impostor's identification. The imposter rule is based on the assumption that between the bank and the drawer, the drawer is in a better position to prevent the loss. Also spelled imposter rule.

Short Dictionary of (mostly American) Legal Terms and Abbreviations.

Игры ⚽ Поможем написать курсовую

Look at other dictionaries:

  • impostor rule — Refers to a UCC Article 3 provision, No. 3 405(l)(a), that renders effective any person s indorsement of a check drawn payable to an impostor …   Black's law dictionary

  • impostor rule — Refers to a UCC Article 3 provision, No. 3 405(l)(a), that renders effective any person s indorsement of a check drawn payable to an impostor …   Black's law dictionary

  • rule of trial and error — Position Po*si tion, n. [F. position, L. positio, fr. ponere, positum, to put, place; prob. for posino, fr. an old preposition used only in comp. (akin to Gr. ?) + sinere to leave, let, permit, place. See {Site}, and cf. {Composite}, {Compound},… …   The Collaborative International Dictionary of English

  • HEBREW GRAMMAR — The following entry is divided into two sections: an Introduction for the non specialist and (II) a detailed survey. [i] HEBREW GRAMMAR: AN INTRODUCTION There are four main phases in the history of the Hebrew language: the biblical or classical,… …   Encyclopedia of Judaism

  • epigraphy — epigraphist, epigrapher, n. /i pig reuh fee/, n. 1. the study or science of epigraphs or inscriptions, esp. of ancient inscriptions. 2. inscriptions collectively. [1850 55; EPIGRAPH + Y3] * * * ▪ historiography Introduction  the study of written… …   Universalium

  • Achaemenid Empire — Persian Empire redirects here. For other uses, see Persian Empire (disambiguation). Persian Empire ← …   Wikipedia

  • Polish–Muscovite War (1605–1618) — For other Polish Russian conflicts, see Polish–Russian War (disambiguation). Polish–Muscovite War of 1605–1618 Map of the war. Important battles marked with crossed swords …   Wikipedia

  • Darius the Great — Darius I Khshayathiya Khshayathiyanam , King of Kings Outline tracing of the figure representing Darius in the Behistun Inscription Reign Sep 522 BCE to …   Wikipedia

  • Fairhair dynasty — St.Olav dynasty , Hardrada dynasty , Gille dynasty and Sverre dynasty all redirect here.The Fairhair dynasty ( no. Hårfagreætta or Hårfagreætten) was a family of kings, alternatively ruling Norway 890 1387 (traditional view), or through only… …   Wikipedia

  • List of Russian people — The Millennium of Russia monument in Veliky Novgorod, featuring the statues and reliefs of the most celebrated people in the first 1000 years of Russian history …   Wikipedia

Share the article and excerpts

Direct link
Do a right-click on the link above
and select “Copy Link”