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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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MIAMI A
[] AromaticTroubledDormouse
20:55
How does one know if they are UR1 or UR2?
[] AromaticTroubledDormouse
20:56
CONGRATS MACAQUE!
TY
got a random stanford email and almost had a heart attack
ALSO CONGRATS!
Congrats1!
21:15
Miami A, yall I'm so excited I could cry.
21:15
Feel like I can finally stop holding my breath!! Whew!!!
[] baddestbunny
22:16
every time I get accosted by a strange man who follows me around because my male coworkers were too busy talking to walk me back to my car I get closer to saying we need to bring back traditional gender roles
Dkk
22:32
Nice! @Macaque
Dkk
22:32
@Aromatic, Have to guess.
Dkk
22:33
That sucks @Bunny do you have to go to the hospital?
[] baddestbunny
22:40
I said accosted not assaulted
23:35
guys. my notre dame address just went long is this good or bad
1a2b3c4d26z
23:37
Oooooo me too
23:37
omg is this good or bad
Dkk
23:47
Idk if gender roles are gunna fix that then.
23:49
it looks like most people who applied in october last cycle didn't get a decision until january... does it even mean anything that our addresses went long??
hows ED 2 compared to ED 1?
Dkk
0:10
No idea
windyMagician
0:34
reporting live to say my ndls address also went long
does it mean anything ^
Dkk
2:21
NDLS and Fordham took a very long time last year. It's good info for people to know.
[] baddestbunny
4:29
let’s get after it boys and girls
Dkk
5:21
I gtg to bed soon.
Dkk
5:22
Big day today. Gunna be a crazy one. I will sleep through the first half.
good morning lsd it is 5 am EST
also jazzy my ndls address went long ages ago i sadly do not think it means anything
my stanford address also went long LOL i think at most it's an indicator it's under review
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