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Can you summarize AZRS 47-4406?
Customer's duty to discover and report unauthorized signature or alteration
Short Summary
This legal document, part of the Arizona Revised Statutes, specifically falls under the Uniform Commercial Code governing bank deposits and collections. It outlines the duties and responsibilities of both banks and customers regarding the discovery and reporting of unauthorized signatures or alterations. According to the document, banks are required to provide customers with statements of account that sufficiently identify the items paid. If the items are not returned, the bank must retain them or provide legible copies for a period of seven years. Customers have the right to request items or copies from the bank. The document also emphasizes the customer’s duty to promptly examine statements or items and report any unauthorized payments. Failure to comply with these duties may preclude the customer from asserting unauthorized signatures or alterations against the bank. The allocation of loss between the customer and the bank depends on the extent to which each party failed to comply with their respective duties. Additionally, the document sets a one-year time limit for customers to discover and report unauthorized signatures or alterations, after which they may be precluded from asserting such claims against the bank.
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
Arizona