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Can you summarize NVRS 104.4406?
Uniform Commercial CodeOriginal Articles > Customers duty to discover or report unauthorized signature or alteration.
Short Summary
This legal document, part of the Nevada Revised Statutes under the Uniform Commercial Code, outlines the duty of customers to discover or report unauthorized signatures or alterations. It applies to both banks and customers. The document states that when a bank sends a statement of account to a customer, the customer must promptly examine the statement or items provided 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 statement or items, they must promptly notify the bank. Failure to comply with this duty may preclude the customer from asserting their unauthorized signature or alteration against the bank. The document also addresses the allocation of loss between the customer and the bank if the bank failed to exercise ordinary care in paying the item. Additionally, it establishes a one-year time limit for customers to discover and report unauthorized signatures or alterations, after which they are precluded from asserting them against the bank.
Whom does it apply to?
Customers and banks
What does it govern?
Duty to discover or report unauthorized signature or alteration
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Nevada