§12A-3-404.

§12A-3-404.
   
                        IMPOSTORS; FICTITIOUS PAYEES
                                      
   (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 (subsection (a) or (b) of Section 3-110 of this title) 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; and
   
   (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) of this section, 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 payee.
   
   (d) With respect to an instrument to which subsection (a) or (b) 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.