Negligence contributing to forged signature or alteration of instrument.

(b) Under subsection (a), if the person asserting the preclusion fails to exercise ordinary care in paying or taking the instrument and that failure substantially contributes to loss, the loss is allocated between the person precluded and the person asserting the preclusion according to the extent to which the failure of each to exercise ordinary care contributed to the loss. (c) Under subsection (a), the burden of proving failure to exercise ordinary care is on the person asserting the preclusion. Under subsection (b), the burden of proving failure to exercise ordinary care is on the person precluded. Cited. 164 C. 604. “Negligence” in section means the failure to exercise “reasonable” and “ordinary” care, i.e. whether a prudent person would have foreseen the danger of forgery as a result of his action. 167 C. 478. Cited. 170 C. 691; 187 C. 637; 242 C. 17. Cited. 2 CA 110. Cited. 39 CS 240.