White Sands Forest Products, Inc. v. First National Bank

OPINION

ALARID, Judge.

INTRODUCTION

{1} This case requires us to decide whether NMSA 1978, § 55-3-406 (1992) creates a statutory cause of action against a depositary bank for allegedly failing to exercise ordinary care in taking for collection numerous checks bearing a forged drawer’s signature. We hold that Section 55-3-406 does not create a statutory negligence action against a depositary bank for alleged negligence in taking checks bearing a forged drawer’s signature.

BACKGROUND

{2} Plaintiff-Appellee, White Sands Forest Products, Inc. (White Sands), is a New Mexico corporation with its…