Oregon Code § 73.0404·Enacted ·Last updated March 01, 2026
Statute Text
Impostors; fictitious payees.
(1) 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.
(2) If a person
whose intent determines to whom an instrument is payable under ORS 73.0110 (1)
or (2) does not intend the person identified as payee to have any interest in
the instrument or the person identified as payee of an instrument is a
fictitious person, the following rules apply until the instrument is negotiated
by special indorsement:
(a) Any person in
possession of the instrument is its holder.
(b) 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.
(3) Under
subsection (1) or (2) of this section, an indorsement is made in the name of a
payee if:
(a) It is made in
a name substantially similar to that of the payee; or
(b) The
instrument, whether or not indorsed, is deposited in a depositary bank to an
account in a name substantially similar to that of the payee.
(4) With respect
to an instrument to which subsection (1) or (2) of this section 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. [1993 c.545 §45]