§ 6A-4-406 Customer's duty to discover andreport unauthorized signature or alteration. – (a) A bank that sends or makes available to a customer a statement of accountshowing payment of items for the account shall either return or make availableto the customer the items paid or provide information in the statement ofaccount sufficient to allow the customer reasonably to identify the items paid.The statement of account provides sufficient information if the item isdescribed by item number, amount, and date of payment.
(b) If the items are not returned to the customer, the personretaining the items shall either retain the items or, if the items aredestroyed, maintain the capacity to furnish legible copies of the items untilthe expiration of seven years after receipt of the items. A customer mayrequest an item from the bank that paid the item, and that bank must provide ina reasonable time either the item or, if the item has been destroyed or is nototherwise obtainable, a legible copy of the item.
(c) If a bank sends or makes available a statement of accountor items pursuant to subsection (a), the customer must exercise reasonablepromptness in examining the statement or the items to determine whether anypayment was not authorized because of an alteration of an item or because apurported signature by or on behalf of the customer was not authorized. If,based on the statement or items provided, the customer should reasonably havediscovered the unauthorized payment, the customer must promptly notify the bankof the relevant facts.
(d) If the bank proves that the customer failed, with respectto an item, to comply with the duties imposed on the customer by subsection(c), the customer is precluded from asserting against the bank:
(1) The customer's unauthorized signature or any alterationon the item, if the bank also proves that it suffered a loss by reason of thefailure; and
(2) The customer's unauthorized signature or alteration bythe same wrongdoer on any other item paid in good faith by the bank if thepayment was made before the bank received notice from the customer of theunauthorized signature or alteration and after the customer had been afforded areasonable period of time, not exceeding 30 days, in which to examine the itemor statement of account and notify the bank.
(e) If subsection (d) applies and the customer proves thatthe bank failed to exercise ordinary care in paying the item and that thefailure substantially contributed to loss, the loss is allocated between thecustomer precluded and the bank asserting the preclusion according to theextent to which the failure of the customer to comply with subsection (c) andthe failure of the bank to exercise ordinary care contributed to the loss. Ifthe customer proves that the bank did not pay the item in good faith, thepreclusion under subsection (d) does not apply.
(f) Without regard to care or lack of care of either thecustomer or the bank, a customer who does not within one year after thestatement or items are made available to the customer (subsection (a)) discoverand report the customer's unauthorized signature on or any alteration on theitem is precluded from asserting against the bank the unauthorized signature oralteration. If there is a preclusion under this subsection, the payor bank maynot recover for breach of warranty under § 6A-4-208 with respect to theunauthorized signature or alteration to which the preclusion applies.
§ 6A-4-406 Customer's duty to discover andreport unauthorized signature or alteration. – (a) A bank that sends or makes available to a customer a statement of accountshowing payment of items for the account shall either return or make availableto the customer the items paid or provide information in the statement ofaccount sufficient to allow the customer reasonably to identify the items paid.The statement of account provides sufficient information if the item isdescribed by item number, amount, and date of payment.
(b) If the items are not returned to the customer, the personretaining the items shall either retain the items or, if the items aredestroyed, maintain the capacity to furnish legible copies of the items untilthe expiration of seven years after receipt of the items. A customer mayrequest an item from the bank that paid the item, and that bank must provide ina reasonable time either the item or, if the item has been destroyed or is nototherwise obtainable, a legible copy of the item.
(c) If a bank sends or makes available a statement of accountor items pursuant to subsection (a), the customer must exercise reasonablepromptness in examining the statement or the items to determine whether anypayment was not authorized because of an alteration of an item or because apurported signature by or on behalf of the customer was not authorized. If,based on the statement or items provided, the customer should reasonably havediscovered the unauthorized payment, the customer must promptly notify the bankof the relevant facts.
(d) If the bank proves that the customer failed, with respectto an item, to comply with the duties imposed on the customer by subsection(c), the customer is precluded from asserting against the bank:
(1) The customer's unauthorized signature or any alterationon the item, if the bank also proves that it suffered a loss by reason of thefailure; and
(2) The customer's unauthorized signature or alteration bythe same wrongdoer on any other item paid in good faith by the bank if thepayment was made before the bank received notice from the customer of theunauthorized signature or alteration and after the customer had been afforded areasonable period of time, not exceeding 30 days, in which to examine the itemor statement of account and notify the bank.
(e) If subsection (d) applies and the customer proves thatthe bank failed to exercise ordinary care in paying the item and that thefailure substantially contributed to loss, the loss is allocated between thecustomer precluded and the bank asserting the preclusion according to theextent to which the failure of the customer to comply with subsection (c) andthe failure of the bank to exercise ordinary care contributed to the loss. Ifthe customer proves that the bank did not pay the item in good faith, thepreclusion under subsection (d) does not apply.
(f) Without regard to care or lack of care of either thecustomer or the bank, a customer who does not within one year after thestatement or items are made available to the customer (subsection (a)) discoverand report the customer's unauthorized signature on or any alteration on theitem is precluded from asserting against the bank the unauthorized signature oralteration. If there is a preclusion under this subsection, the payor bank maynot recover for breach of warranty under § 6A-4-208 with respect to theunauthorized signature or alteration to which the preclusion applies.
§ 6A-4-406 Customer's duty to discover andreport unauthorized signature or alteration. – (a) A bank that sends or makes available to a customer a statement of accountshowing payment of items for the account shall either return or make availableto the customer the items paid or provide information in the statement ofaccount sufficient to allow the customer reasonably to identify the items paid.The statement of account provides sufficient information if the item isdescribed by item number, amount, and date of payment.
(b) If the items are not returned to the customer, the personretaining the items shall either retain the items or, if the items aredestroyed, maintain the capacity to furnish legible copies of the items untilthe expiration of seven years after receipt of the items. A customer mayrequest an item from the bank that paid the item, and that bank must provide ina reasonable time either the item or, if the item has been destroyed or is nototherwise obtainable, a legible copy of the item.
(c) If a bank sends or makes available a statement of accountor items pursuant to subsection (a), the customer must exercise reasonablepromptness in examining the statement or the items to determine whether anypayment was not authorized because of an alteration of an item or because apurported signature by or on behalf of the customer was not authorized. If,based on the statement or items provided, the customer should reasonably havediscovered the unauthorized payment, the customer must promptly notify the bankof the relevant facts.
(d) If the bank proves that the customer failed, with respectto an item, to comply with the duties imposed on the customer by subsection(c), the customer is precluded from asserting against the bank:
(1) The customer's unauthorized signature or any alterationon the item, if the bank also proves that it suffered a loss by reason of thefailure; and
(2) The customer's unauthorized signature or alteration bythe same wrongdoer on any other item paid in good faith by the bank if thepayment was made before the bank received notice from the customer of theunauthorized signature or alteration and after the customer had been afforded areasonable period of time, not exceeding 30 days, in which to examine the itemor statement of account and notify the bank.
(e) If subsection (d) applies and the customer proves thatthe bank failed to exercise ordinary care in paying the item and that thefailure substantially contributed to loss, the loss is allocated between thecustomer precluded and the bank asserting the preclusion according to theextent to which the failure of the customer to comply with subsection (c) andthe failure of the bank to exercise ordinary care contributed to the loss. Ifthe customer proves that the bank did not pay the item in good faith, thepreclusion under subsection (d) does not apply.
(f) Without regard to care or lack of care of either thecustomer or the bank, a customer who does not within one year after thestatement or items are made available to the customer (subsection (a)) discoverand report the customer's unauthorized signature on or any alteration on theitem is precluded from asserting against the bank the unauthorized signature oralteration. If there is a preclusion under this subsection, the payor bank maynot recover for breach of warranty under § 6A-4-208 with respect to theunauthorized signature or alteration to which the preclusion applies.
