First Federal Savings & Loan Ass'n of Sioux Falls v. Union Bank & Trust

I concur in the result of the majority decision, but differ on the question of whether this is a case for the application of SDCL 57-13-13 (UCC 3-406) for the reasons hereinafter set forth.

APPLICATION OF UCC 3-406

The threshold question in evaluating First Federal’s first theory of Recovery is whether the drawer’s signatures were “authorized” or “unauthorized.” If “unauthorized” then the case will be governed by SDCL 57-13-13 (UCC 3-406), as urged by the Bank, rather than the common-law rule urged by First Federal.

“Unauthorized signature” is defined by the Code as “one made without actual,…