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Can you summarize NHRS 382-A:4-406?
UNIFORM COMMERCIAL CODE > Customer's Duty to Discover and Report Unauthorized Signature or Alteration.
Short Summary
This legal document, part of the New Hampshire Revised Statutes under the Uniform Commercial Code, outlines the duty of customers to discover and report unauthorized signatures or alterations. It applies to both customers and banks. According to the document, if a bank sends a statement of account or items to a customer, the customer must promptly examine them to determine if any payment was unauthorized due to an alteration or unauthorized signature. If the customer should have reasonably discovered the unauthorized payment based on the provided statement or items, they must promptly notify the bank. Failure to comply with this duty may preclude the customer from asserting against the bank the unauthorized signature or alteration. However, if the bank failed to exercise ordinary care in paying the item and the customer can prove it, the preclusion does not apply. Additionally, if the customer does not discover and report the unauthorized signature or alteration within one year, they are precluded from asserting it against the bank. The document does not mention any specific penalties or exemptions.
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 penalties are mentioned.
Jurisdiction
New Hampshire