31 CFR 370.40
§ 370.40 Can I be held accountable if my negligence contributes to a forged signature?
United States · 31 CFR — Money and Finance: Treasury · Status: effective
Cite this
- Citation
- 31 CFR 370.40, § 370.40 Can I be held accountable if my negligence contributes to a forged signature?, United States, version 1 as recorded 2026-07-09, yourstate.us, https://yourstate.us/provision/140668
- Permanent ID
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Full text
(a) General. If your failure to exercise ordinary care substantially contributes to the submission of a forged signature, then you cannot claim that the signature is a forgery. However, we cannot invoke this section against you if we cannot first establish that we were reasonable in relying upon the signature. If we can do so, you bear the burden of production and the burden of persuasion in establishing your exercise of ordinary care. If you cannot do so, then you cannot claim that the signature is a forgery.
(b) Exception. This section has no application in any dispute involving a debit authorization or credit card transaction.
Legislative history
This is a federal regulation, adopted through agency rulemaking under the Administrative Procedure Act — not enacted by a recorded vote of Congress.