{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-3-405","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-3-405","heading":"Employer's Responsibility for Fraudulent Indorsement by","body":"Employee.\n\nEMPLOYER'S RESPONSIBILITY FOR FRAUDULENT\n\nINDORSEMENT BY EMPLOYEE\n\n(a) In this section:\n\n(1) \"Employee\" includes an independent contractor and\n\nemployee of an independent contractor retained by the\n\nemployer;\n\n(2) \"Fraudulent indorsement\" means (i) in the case of an\n\ninstrument payable to the employer, a forged\n\nindorsement purporting to be that of the employer, or\n\n(ii) in the case of an instrument with respect to\n\nwhich the employer is the issuer, a forged indorsement\n\npurporting to be that of the person identified as\n\npayee; and\n\n(3) \"Responsibility\" with respect to instruments means\n\nauthority (i) to sign or indorse instruments on behalf\n\nof the employer, (ii) to process instruments received\n\nby the employer for bookkeeping purposes, for deposit\n\nto an account, or for other disposition, (iii) to\n\nprepare or process instruments for issue in the name\n\nof the employer, (iv) to supply information\n\ndetermining the names or addresses of payees of\n\ninstruments to be issued in the name of the employer,\n\n(v) to control the disposition of instruments to be\n\nissued in the name of the employer, or (vi) to act\n\notherwise with respect to instruments in a responsible\n\ncapacity. \"Responsibility\" does not include authority\n\nthat merely allows an employee to have access to\n\ninstruments or blank or incomplete instrument forms\n\nthat are being stored or transported or are part of\n\nincoming or outgoing mail, or similar access.\n\n(b) For the purpose of determining the rights and liabilities\n\nof a person who, in good faith, pays an instrument or takes it for\n\nvalue or for collection, if an employer entrusted an employee with\n\nresponsibility with respect to the instrument and the employee or a\n\nperson acting in concert with the employee makes a fraudulent\n\nindorsement of the instrument, the indorsement is effective as the\n\nindorsement of the person to whom the instrument is payable if it is\n\nmade in the name of that person. If the person paying the\n\ninstrument or taking it for value or for collection fails to\n\nexercise ordinary care in paying or taking the instrument and that\n\nfailure substantially contributes to loss resulting from the fraud,\n\nthe person bearing the loss may recover from the person failing to\n\nexercise ordinary care to the extent the failure to exercise\n\nordinary care contributed to the loss.\n\n(c) Under subsection (b) of this section, an indorsement is\n\nmade in the name of the person to whom an instrument is payable if\n\n(i) it is made in a name substantially similar to the name of that\n\nperson or (ii) the instrument, whether or not indorsed, is deposited\n\nin a depositary bank to an account in a name substantially similar\n\nto the name of that person.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"dbe70d25537a878b91ba5fd36d5bf7c93a7df80cae87c59eed9e3caa28de2a3b","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-3-404","next":"us-ok/okla.-stat.-tit.-12a-12a-3-406"},"notice":"GroundRules: Original legal text. Not legal advice."}