Ch. 91                                      1996 LAWS OF MARYLAND

(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 TITLE
WHICH MAKES THE UNAUTHORIZED SIGNATURE EFFECTIVE FOR THE PURPOSES OF
THIS TITLE.

3-404.

(A)    IF AN IMPOSTOR, BY USE OF THE MAILS OR OTHERWISE, INDUCES THE
ISSUER OF AN INSTRUMENT TO ISSUE THE INSTRUMENT TO THE IMPOSTOR, OR TO A
PERSON ACTING IN CONCERT WITH THE IMPOSTOR, BY IMPERSONATING THE PAYEE
OF THE INSTRUMENT OR A PERSON AUTHORIZED TO ACT FOR THE PAYEE, AN
INDORSEMENT OF THE INSTRUMENT BY ANY PERSON IN THE NAME OF THE PAYEE
IS EFFECTIVE AS THE INDORSEMENT OF THE PAYEE IN FAVOR OF A PERSON WHO, IN
GOOD FAITH, PAYS THE INSTRUMENT OR TAKES IT FOR VALUE OR FOR
COLLECTION.

(B)     IF (I) A PERSON WHOSE INTENT DETERMINES TO WHOM AN INSTRUMENT
IS PAYABLE (§ 3-110(A) OR (B)) DOES NOT INTEND THE PERSON IDENTIFIED AS PAYEE
TO HAVE ANY INTEREST IN THE INSTRUMENT, OR (II) THE PERSON IDENTIFIED AS
PAYEE OF AN INSTRUMENT IS A FICTITIOUS PERSON, THE FOLLOWING RULES APPLY
UNTIL THE INSTRUMENT IS NEGOTIATED BY SPECIAL INDORSEMENT:

(1)     ANY PERSON IN POSSESSION OF THE INSTRUMENT IS ITS HOLDER.

(2)     AN INDORSEMENT BY ANY PERSON IN THE NAME OF THE PAYEE
STATED IN THE INSTRUMENT IS EFFECTIVE AS THE INDORSEMENT OF THE PAYEE IN
FAVOR OF A PERSON WHO, IN GOOD FAITH, PAYS THE INSTRUMENT OR TAKES IT
FOR VALUE OR FOR COLLECTION.

(C)     UNDER SUBSECTION (A) OR (B), AN INDORSEMENT IS MADE IN THE NAME
OF A PAYEE IF (I) IT IS MADE IN A NAME SUBSTANTIALLY SIMILAR TO THAT OF THE
PAYEE OR (II) THE INSTRUMENT, WHETHER OR NOT INDORSED, IS DEPOSITED IN A
DEPOSITARY BANK TO AN ACCOUNT IN A NAME SUBSTANTIALLY SIMILAR TO THAT
OF THE PAYER

(D)    WITH RESPECT TO AN INSTRUMENT TO WHICH SUBSECTION (A) OR (B)
APPLIES, IF A PERSON PAYING THE INSTRUMENT OR TAKING IT FOR VALUE OR FOR
COLLECTION FAILS TO EXERCISE ORDINARY CARE IN PAYING OR TAKING THE
INSTRUMENT AND THAT FAILURE SUBSTANTIALLY CONTRIBUTES TO LOSS
RESULTING FROM PAYMENT OF THE INSTRUMENT, THE PERSON BEARING THE LOSS
MAY RECOVER FROM THE PERSON FAILING TO EXERCISE ORDINARY CARE TO THE
EXTENT THE FAILURE TO EXERCISE ORDINARY CARE CONTRIBUTED TO THE LOSS.

3-405.

(A) IN THIS SECTION:

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