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Simple English definitions for legal terms

padded-payroll rule

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A quick definition of padded-payroll rule:

The padded-payroll rule is a legal principle that states if someone issues a check or other financial document to a person who they do not actually intend to have any interest in the document, and that person's name is later forged, the forgery will still be considered valid and the document can be transferred to others. This is also known as the fictitious-payee rule. Essentially, it means that if someone creates a fake person or company to receive payments, and someone else forges that fake person's signature, the payment can still be considered legitimate.

A more thorough explanation:

The padded-payroll rule, also known as the fictitious-payee rule, is a principle in commercial law. It states that if a person issues a check or other commercial paper to a payee who they do not intend to have any interest in the instrument, a forgery of the payee's name will still be effective in passing good title to later transferees.

For example, if a company issues a paycheck to a fake employee, but the check is later stolen and the fake employee's name is forged, the person who receives the check from the thief may still have a legal claim to the funds.

This rule can be problematic because it allows for fraudulent activity to go undetected. However, it is important for businesses to take measures to prevent such fraud, such as verifying the identities of all payees and closely monitoring their accounts.

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THATS SO FUNNY
i cant i would go crazy
JumpySubsequentDolphin
20:50
i need to know who decided to do that.
JumpySubsequentDolphin
20:50
omg im on a plane weeeee
the devil
youre on a plane??? LSD made the mile high club??
20:50
yo splitterus are you in school already
20:50
it says ur c/o 2027
JumpySubsequentDolphin
20:51
@SplitterusClitterus: HAHAH yes
ur user is hilarioussss and no i just graduated this may and am now applying ---also im out of messages so ill take a lil
20:52
roger dat. see u in heck
im back, r u applying this cycle too
JumpySubsequentDolphin
21:32
this child fell asleep on me
JumpySubsequentDolphin
21:32
im so uncomfortable
just push him off the entire seat
JumpySubsequentDolphin
21:34
LMAOOOO
JumpySubsequentDolphin
21:35
no he’s literally like 8 and he fully just put his head on my bicep and slept
JumpySubsequentDolphin
21:35
he has since moved
22:12
@SplitterusClitterus: me yesterday
gulc baby pls text me back... i miss you ...... :(
22:23
i just went into a discord vc and yelled "YALL I JUST GOT INTO J.M. SCHOOL OF LAW"
22:24
people were getting excited :sob:
22:25
then someone was like "what does jm stand for" and i was like .. well
AHHAHAHAHAHAHHAHAHAHAHAHAH
@JumpySubsequentDolphin: wait this is so cute, also where r u going
JOE MBIDEN
JumpySubsequentDolphin
22:39
@splitty Oregon!
oh yay for what thats so random
JumpySubsequentDolphin
22:45
haha my brother and sister in law live there
so cutie oregon is beatiful
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