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FRANKLIN v. SAFECO INS. CO. OF AMERICA

TC 33641; CA A33899; SC S33053.

737 P.2d 1231 (1987)

303 Or. 376

Kendall FRANKLIN and Elsie Franklin, Husband and Wife, Respondents On Review, v. SAFECO INSURANCE COMPANY OF AMERICA A CORPORATION, Defendant, First Interstate Bank of Oregon, N.A. Formerly First National Bank of Oregon, a National Banking Association, Petitioner On Review. Mark F. Farstvedt and Bill E. Moore, Dba Sage Insurance Center, Defendants.

Supreme Court of Oregon, In Banc.

Decided May 27, 1987.

Attorney(s) appearing for the Case

Martin E. Hansen, Bend, argued the cause and filed the petition for petitioner on review. With him on the petition for review was Johnson, Marceau, Karnopp, Petersen & Nash, Bend.

Steven J. Pierce, Ontario, argued the cause for respondent on review and filed a response to petition for review.

CAMPBELL, Justice.

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. "* * *. "(3) Subject...

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