[Code of Federal Regulations]
[Title 31, Volume 2]
[Revised as of July 1, 2004]
From the U.S. Government Printing Office via GPO Access
[CITE: 31CFR370.40]

[Page 502]
 
                  TITLE 31--MONEY AND FINANCE: TREASURY
 
         CHAPTER II--FISCAL SERVICE, DEPARTMENT OF THE TREASURY
 
PART 370_ELECTRONIC TRANSACTIONS AND FUNDS TRANSFERS RELATING TO UNITED 
STATES SECURITIES--Table of Contents
 
  Subpart D_Electronic Submission of Transaction Requests Through the 
                        Bureau of the Public Debt
 
Sec. 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.