Franklin v. Safeco Insurance Co. of America

This case involves the interpretation and application of parts of ORS 73.4190 in a situation where a depositary bank gives provisional credit to a co-payee in the face amount of a draft on which the joint co-payees’ names have been forged.

The following parts of ORS 73.4190 are relevant:

“(1) An instrument is converted when:

“(c) It is paid on a forged indorsement.

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“(3) Subject to the provisions of the Uniform Commercial Code concerning restrictive indorsements a representative, including a depositary or collecting bank, who has in good faith and in accordance with the reasonable…