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Can you summarize DCCO 28:4-406?
Collection of Items: Payor Banks. > Customers duty to discover and report unauthorized signature or alteration.
Short Summary
This legal document, part of the Uniform Commercial Code, outlines the duties and responsibilities of customers and banks regarding the discovery and reporting of unauthorized signatures or alterations in commercial transactions. According to the document, banks must provide customers with statements of account that sufficiently identify the items paid, and customers must promptly examine these statements or items to determine if any unauthorized payments have occurred. If the customer fails to report unauthorized signatures or alterations within a reasonable time, they may be precluded from asserting these claims against the bank. However, if the bank fails to exercise ordinary care in paying the item and the customer can prove it, the loss may be allocated between the customer and the bank. The document also establishes a one-year time limit for customers to discover and report unauthorized signatures or alterations, after which they may be precluded from asserting these claims against the bank.
Whom does it apply to?
Customers and banks involved in commercial transactions
What does it govern?
Customers 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
Washington, D.C.