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Can you summarize 13 PACS 4406?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > Duty of customer to discover and report unauthorized signature or alteration.
Short Summary
This legal document, part of the Pennsylvania Compiled Statutes, specifically addresses the relationship between a payor bank and its customer in the context of bank deposits and collections. It outlines the duties and responsibilities of both parties. The document states that when a bank sends or makes available a statement of account to a customer, it must either return the paid items or provide sufficient information in the statement to allow the customer to identify the items paid. The customer is required to exercise reasonable promptness in examining the statement or items to determine if any payment was unauthorized due to alteration or unauthorized signature. If the customer should have reasonably discovered the unauthorized payment based on the provided information, they must promptly notify the bank. Failure to report unauthorized signatures or alterations may preclude the customer from asserting against the bank. The document also addresses the allocation of loss between the customer and the bank, as well as the statutes of limitations applicable to the customer. Overall, this document governs the duties and obligations of customers in discovering and reporting unauthorized signatures or alterations in their bank statements.
Whom does it apply to?
Customers of a bank
What does it govern?
Relationship between payor bank and its customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Pennsylvania