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Can you summarize IACO 554.4406?
UNIFORM COMMERCIAL CODE > Customers duty to discover and report unauthorized signature or alteration.
Short Summary
This legal document, governed by the Iowa Code under the Uniform Commercial Code, outlines the duties and responsibilities of customers and banks regarding the discovery and reporting of unauthorized signatures or alterations. According to the document, a bank must either return or provide sufficient information to the customer to identify the items paid in a statement of account. The customer has the right to request items or legible copies from the bank. The customer is required to promptly examine the statement or items and notify the bank if any unauthorized payment is discovered. Failure to comply with these duties may preclude the customer from asserting unauthorized signatures or alterations against the bank. If the bank failed to exercise ordinary care or did not pay the item in good faith, the preclusion may not apply. Additionally, if the customer does not discover and report unauthorized signatures or alterations within one year, they are precluded from asserting them against the bank. The document does not specify any specific penalties for non-compliance or violation.
Whom does it apply to?
Customers and banks
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
Iowa