{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.3A-405.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.3A-405.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.3A-405.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.3A-405.html"}],"law_id":85778,"edition_id":1,"section_id":85778,"structure_id":15041,"section_number":"8.3A-405","catch_line":"Employer’s responsibility for fraudulent endorsement by employee","history":"Code 1950, \u00a7 6-361; 1956, c. 149; 1964, c. 219, \u00a7 8.3-405; 1992, c. 693.","full_text":"a\n\nIn this section:1\n\n“Employee” includes an independent contractor and employee of an independent contractor retained by the employer.2\n\n“Fraudulent endorsement” means (i) in the case of an instrument payable to the employer, a forged endorsement purporting to be that of the employer, or (ii) in the case of an instrument with respect to which the employer is the issuer, a forged endorsement purporting to be that of the person identified as payee.3\n\n“Responsibility” with respect to instruments means authority (i) to sign or endorse instruments on behalf of the employer, (ii) to process instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other disposition, (iii) to prepare or process instruments for issue in the name of the employer, (iv) to supply information determining the names or addresses of payees of instruments to be issued in the name of the employer, (v) to control the disposition of instruments to be issued in the name of the employer, or (vi) to act otherwise with respect to instruments in a responsible capacity. “Responsibility” does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access.b\n\nFor the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent endorsement of the instrument, the endorsement is effective as the endorsement of the person to whom the instrument is payable if it is made in the name of that person. If the 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 the fraud, 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.c\n\nUnder subsection (b), an endorsement is made in the name of the person to whom an instrument is payable if (i) it is made in a name substantially similar to the name of that person or (ii) the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person.","order_by":null,"text":{"0":{"id":307207,"text":"In this section:","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"a1"},"1":{"id":307208,"text":"“Employee” includes an independent contractor and employee of an independent contractor retained by the employer.","type":"section","prefixes":["a","1"],"prefix":"1","entire_prefix":"a1","prefix_anchor":"a1","level":2,"prior_prefix":"a","next_prefix":"a2"},"2":{"id":307209,"text":"“Fraudulent endorsement” means (i) in the case of an instrument payable to the employer, a forged endorsement purporting to be that of the employer, or (ii) in the case of an instrument with respect to which the employer is the issuer, a forged endorsement purporting to be that of the person identified as payee.","type":"section","prefixes":["a","2"],"prefix":"2","entire_prefix":"a2","prefix_anchor":"a2","level":2,"prior_prefix":"a1","next_prefix":"a3"},"3":{"id":307210,"text":"“Responsibility” with respect to instruments means authority (i) to sign or endorse instruments on behalf of the employer, (ii) to process instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other disposition, (iii) to prepare or process instruments for issue in the name of the employer, (iv) to supply information determining the names or addresses of payees of instruments to be issued in the name of the employer, (v) to control the disposition of instruments to be issued in the name of the employer, or (vi) to act otherwise with respect to instruments in a responsible capacity. “Responsibility” does not include authority that merely allows an employee to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access.","type":"section","prefixes":["a","3"],"prefix":"3","entire_prefix":"a3","prefix_anchor":"a3","level":2,"prior_prefix":"a2","next_prefix":"b"},"4":{"id":307211,"text":"For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee with responsibility with respect to the instrument and the employee or a person acting in concert with the employee makes a fraudulent endorsement of the instrument, the endorsement is effective as the endorsement of the person to whom the instrument is payable if it is made in the name of that person. If the 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 the fraud, 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.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a3","next_prefix":"c"},"5":{"id":307212,"text":"Under subsection (b), an endorsement is made in the name of the person to whom an instrument is payable if (i) it is made in a name substantially similar to the name of that person or (ii) the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b"}},"ancestry":[{"id":15041,"edition_id":1,"name":"Liability of Parties","identifier":"4","label":"part","depth":2,"order_by":1,"parent_id":13054,"metadata":{},"date_created":"2026-06-26 03:51:41","date_modified":"2026-06-26 03:51:41","permalink":{"id":282869,"object_type":"structure","relational_id":15041,"identifier":"4","token":"8.3A\/4","url":"\/8.3A\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":13054,"edition_id":1,"name":"Commercial Code \u2014 Negotiable Instruments","identifier":"8.3A","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:44:11","date_modified":"2026-06-26 03:44:11","permalink":{"id":282705,"object_type":"structure","relational_id":13054,"identifier":"8.3A","token":"8.3A","url":"\/8.3A\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":72303,"structure_id":15041,"section_number":"8.3A-401","catch_line":"Signature necessary for liability on instrument","url":"\/8.3A-401\/","token":"8.3A\/4\/8.3A-401","metadata":false},{"id":57340,"structure_id":15041,"section_number":"8.3A-402","catch_line":"Signature by representative","url":"\/8.3A-402\/","token":"8.3A\/4\/8.3A-402","metadata":false},{"id":73829,"structure_id":15041,"section_number":"8.3A-403","catch_line":"Unauthorized signature","url":"\/8.3A-403\/","token":"8.3A\/4\/8.3A-403","metadata":false},{"id":82256,"structure_id":15041,"section_number":"8.3A-404","catch_line":"Impostors; fictitious payees","url":"\/8.3A-404\/","token":"8.3A\/4\/8.3A-404","metadata":false},{"id":85778,"structure_id":15041,"section_number":"8.3A-405","catch_line":"Employer's responsibility for fraudulent endorsement by employee","url":"\/8.3A-405\/","token":"8.3A\/4\/8.3A-405","metadata":false},{"id":86533,"structure_id":15041,"section_number":"8.3A-406","catch_line":"Negligence contributing to forged signature or alteration of instrument","url":"\/8.3A-406\/","token":"8.3A\/4\/8.3A-406","metadata":false},{"id":76929,"structure_id":15041,"section_number":"8.3A-407","catch_line":"Alteration","url":"\/8.3A-407\/","token":"8.3A\/4\/8.3A-407","metadata":false},{"id":72123,"structure_id":15041,"section_number":"8.3A-408","catch_line":"Drawee not liable on unaccepted draft","url":"\/8.3A-408\/","token":"8.3A\/4\/8.3A-408","metadata":false},{"id":74394,"structure_id":15041,"section_number":"8.3A-409","catch_line":"Acceptance of draft; certified check","url":"\/8.3A-409\/","token":"8.3A\/4\/8.3A-409","metadata":false},{"id":86849,"structure_id":15041,"section_number":"8.3A-410","catch_line":"Acceptance varying draft","url":"\/8.3A-410\/","token":"8.3A\/4\/8.3A-410","metadata":false},{"id":76564,"structure_id":15041,"section_number":"8.3A-411","catch_line":"Refusal to pay cashier's checks, teller's checks, and certified checks","url":"\/8.3A-411\/","token":"8.3A\/4\/8.3A-411","metadata":false},{"id":85403,"structure_id":15041,"section_number":"8.3A-412","catch_line":"Obligation of issuer of note or cashier's check","url":"\/8.3A-412\/","token":"8.3A\/4\/8.3A-412","metadata":false},{"id":62163,"structure_id":15041,"section_number":"8.3A-413","catch_line":"Obligation of acceptor","url":"\/8.3A-413\/","token":"8.3A\/4\/8.3A-413","metadata":false},{"id":81363,"structure_id":15041,"section_number":"8.3A-414","catch_line":"Obligation of drawer","url":"\/8.3A-414\/","token":"8.3A\/4\/8.3A-414","metadata":false},{"id":78513,"structure_id":15041,"section_number":"8.3A-415","catch_line":"Obligation of endorser","url":"\/8.3A-415\/","token":"8.3A\/4\/8.3A-415","metadata":false},{"id":58496,"structure_id":15041,"section_number":"8.3A-416","catch_line":"Transfer warranties","url":"\/8.3A-416\/","token":"8.3A\/4\/8.3A-416","metadata":false},{"id":63742,"structure_id":15041,"section_number":"8.3A-417","catch_line":"Presentment warranties","url":"\/8.3A-417\/","token":"8.3A\/4\/8.3A-417","metadata":false},{"id":68633,"structure_id":15041,"section_number":"8.3A-418","catch_line":"Payment or acceptance by mistake","url":"\/8.3A-418\/","token":"8.3A\/4\/8.3A-418","metadata":false},{"id":62031,"structure_id":15041,"section_number":"8.3A-419","catch_line":"Instruments signed for accommodation","url":"\/8.3A-419\/","token":"8.3A\/4\/8.3A-419","metadata":false},{"id":75961,"structure_id":15041,"section_number":"8.3A-420","catch_line":"Conversion of instrument","url":"\/8.3A-420\/","token":"8.3A\/4\/8.3A-420","metadata":false}],"previous_section":{"id":82256,"structure_id":15041,"section_number":"8.3A-404","catch_line":"Impostors; fictitious payees","url":"\/8.3A-404\/","token":"8.3A\/4\/8.3A-404","metadata":false},"next_section":{"id":86533,"structure_id":15041,"section_number":"8.3A-406","catch_line":"Negligence contributing to forged signature or alteration of instrument","url":"\/8.3A-406\/","token":"8.3A\/4\/8.3A-406","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.3A-405\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1956, chapter 149; in 1964, chapter 219; in 1992, chapter 693.<\/p>","references":[{"id":63742,"section_number":"8.3A-417","catch_line":"Presentment warranties","order_by":null,"url":"\/8.3A-417\/"},{"id":80890,"section_number":"8.4-207.2","catch_line":"Presentment warranties","order_by":null,"url":"\/8.4-207.2\/"}],"refers_to":false,"permalink":{"id":282887,"object_type":"law","relational_id":85778,"identifier":"8.3A-405","token":"8.3A\/4\/8.3A-405","url":"\/8.3A-405\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.3A-405\/","token":"8.3A\/4\/8.3A-405","dublin_core":{"Title":"Employer’s responsibility for fraudulent endorsement by employee","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.3A-405","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> In this section: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> “Employee<\/span>” includes an independent contractor and employee<\/span> of an independent contractor retained by the employer. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> “Fraudulent endorsement<\/span>” means (i) in the case of an instrument payable to the employer, a forged endorsement purporting to be that of the employer, or (ii) in the case of an instrument with respect to which the employer is the issuer, a forged endorsement purporting to be that of the person identified as payee. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

3.<\/span> “Responsibility<\/span>” with respect to instruments means authority (i) to sign or endorse instruments on behalf of the employer, (ii) to process instruments received by the employer for bookkeeping purposes, for deposit to an account, or for other disposition<\/span>, (iii) to prepare or process instruments for issue<\/span> in the name of the employer, (iv) to supply information determining the names or addresses of payees of instruments to be issued in the name of the employer, (v) to control the disposition<\/span> of instruments to be issued in the name of the employer, or (vi) to act otherwise with respect to instruments in a responsible capacity. “Responsibility<\/span>” does not include authority that merely allows an employee<\/span> to have access to instruments or blank or incomplete instrument forms that are being stored or transported or are part of incoming or outgoing mail, or similar access. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> For the purpose of determining the rights and liabilities of a person who, in good faith, pays an instrument or takes it for value or for collection, if an employer entrusted an employee<\/span> with responsibility<\/span> with respect to the instrument and the employee<\/span> or a person acting in concert with the employee<\/span> makes a fraudulent endorsement<\/span> of the instrument, the endorsement is effective as the endorsement of the person to whom the instrument is payable if it is made in the name of that person. If the 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 the fraud<\/span>, 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> Under subsection (b), an endorsement is made in the name of the person to whom an instrument is payable if (i) it is made in a name substantially similar to the name of that person or (ii) the instrument, whether or not endorsed, is deposited in a depositary bank to an account in a name substantially similar to the name of that person. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nEMPLOYER’S RESPONSIBILITY FOR FRAUDULENT ENDORSEMENT BY EMPLOYEE (\u00a7\n8.3A-405)\n\na. In this section:\n\n 1. “Employee” includes an independent contractor and employee of\n an independent contractor retained by the employer.\n\n 2. “Fraudulent endorsement” means (i) in the case of an instrument\n payable to the employer, a forged endorsement purporting to be that of the\n employer, or (ii) in the case of an instrument with respect to which the\n employer is the issuer, a forged endorsement purporting to be that of the\n person identified as payee.\n\n 3. “Responsibility” with respect to instruments means authority\n (i) to sign or endorse instruments on behalf of the employer, (ii) to process\n instruments received by the employer for bookkeeping purposes, for deposit to\n an account, or for other disposition, (iii) to prepare or process instruments\n for issue in the name of the employer, (iv) to supply information determining\n the names or addresses of payees of instruments to be issued in the name of\n the employer, (v) to control the disposition of instruments to be issued in\n the name of the employer, or (vi) to act otherwise with respect to instruments\n in a responsible capacity. “Responsibility” does not include\n authority that merely allows an employee to have access to instruments or\n blank or incomplete instrument forms that are being stored or transported or\n are part of incoming or outgoing mail, or similar access.\n\nb. For the purpose of determining the rights and liabilities of a person who, in\ngood faith, pays an instrument or takes it for value or for collection, if an\nemployer entrusted an employee with responsibility with respect to the\ninstrument and the employee or a person acting in concert with the employee\nmakes a fraudulent endorsement of the instrument, the endorsement is effective\nas the endorsement of the person to whom the instrument is payable if it is made\nin the name of that person. If the person paying the instrument or taking it for\nvalue or for collection fails to exercise ordinary care in paying or taking the\ninstrument and that failure substantially contributes to loss resulting from the\nfraud, the person bearing the loss may recover from the person failing to\nexercise ordinary care to the extent the failure to exercise ordinary care\ncontributed to the loss.\n\nc. Under subsection (b), an endorsement is made in the name of the person to\nwhom an instrument is payable if (i) it is made in a name substantially similar\nto the name of that person or (ii) the instrument, whether or not endorsed, is\ndeposited in a depositary bank to an account in a name substantially similar to\nthe name of that person.\n\nHISTORY: Code 1950, \u00a7 6-361; 1956, c. 149; 1964, c. 219, \u00a7 8.3-405; 1992, c.\n693.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}