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Can you summarize 9A VTST 4-406?
BANK DEPOSITS AND COLLECTIONS > Customer's duty to discover and report unauthorized signature or alteration
Short Summary
This legal document, part of the Vermont Statutes Uniform Commercial Code, specifically addresses the duty of customers to discover and report unauthorized signatures or alterations. It outlines the responsibilities of banks in returning items shown as paid on a statement of accounts or providing sufficient information for customers to identify paid items. The document also emphasizes the importance of prompt examination of statements or items by customers to identify unauthorized payments. If a customer fails to comply with their duties and the bank proves a loss due to the failure, the customer may be precluded from asserting unauthorized signatures or alterations. However, if the bank fails to exercise ordinary care in paying the item, the preclusion may not apply. Additionally, if a customer does not discover and report unauthorized signatures or alterations within one year, they may be precluded from asserting such claims against the bank. The document does not mention specific penalties for non-compliance or violations.
Whom does it apply to?
Customers and banks
What does it govern?
Customer's duty to discover and report unauthorized signature or alteration
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Vermont