370.40—Can I be held accountable if my negligence contributes to a forged signature?

(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.

CFR

370.40—Can I be held accountable if my negligence contributes to a forged signature?