{"data":{"id":"us-ky/krs-355.3-406","jurisdiction":"us-ky","citation":"KRS 355.3-406","heading":"Negligence contributing to forged signature or alteration of instrument.","body":"(1) A person whose failure to exercise ordinary care substantially contributes to an\nalteration of an instrument or to the making of a forged signature on an instrument\nis precluded from asserting the alteration or the forgery against a person who, in\ngood faith, pays the instrument or takes it for value or for collection.\n(2) Under subsection (1) of this section, if the person asserting the preclusion fails to\nexercise ordinary care in paying or taking the instrument and that failure\nsubstantially contributes to loss, the loss is allocated between the person precluded\nand the person asserting the preclusion according to the extent to which the failure\nof each to exercise ordinary care contributed to the loss.\n(3) Under subsection (1) of this section, the bu rden of proving failure to exercise\nordinary care is on the person asserting the preclusion. Under subsection (2) of this\nsection, the burden of proving failure to exercise ordinary care is on the person\nprecluded.","path":[],"source_url":"https://apps.legislature.ky.gov/law/statutes/statute.aspx?id=33476","current_through":"Includes enactments through the 2026 Regular Session","vintage":"09/05/2026","retrieved_at":"2026-09-05T20:58:44Z","sha256":"931502fa86675b5947c9fd757825cb082a4714c09fe5b9f98a2350a7a458e662","source_id":"us-ky","stale":false,"prev":"us-ky/krs-355.3-405","next":"us-ky/krs-355.3-407"},"notice":"GroundRules: Original legal text. Not legal advice."}