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Can you summarize KSST 84-4-406?
BANK DEPOSITS AND COLLECTIONS > Customer's duty to discover and report unauthorized signature or alteration.
Short Summary
This legal document, part of the Kansas Statutes’ Uniform Commercial Code on Bank Deposits and Collections, outlines the duties and responsibilities of customers and banks regarding the discovery and reporting of unauthorized signatures or alterations. According to the document, banks must provide customers with statements of account that sufficiently identify the items paid, either by returning the items or providing detailed information. If the items are not returned, the bank must retain them or maintain legible copies for seven years. Customers are required to promptly examine the statements or items and notify the bank if they discover any unauthorized payments due to alterations or unauthorized signatures. Failure to comply with these duties may preclude the customer from asserting claims against the bank for unauthorized signatures or alterations. The document also addresses the allocation of losses between the customer and the bank based on their respective failures to comply with the duties. Additionally, it establishes a one-year time limit for customers to discover and report unauthorized signatures or alterations, after which they may be precluded from asserting claims against the bank. The document does not specify any 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
Kansas