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Can you summarize OHRC Section 1304.35?
Bank Deposits And Collections > Customer's duty to discover and report unauthorized signature or alteration - UCC 4-406.
Short Summary
This legal document, governed by UCC 4-406, outlines the duties and responsibilities of customers and banks regarding the discovery and reporting of unauthorized signatures or alterations. It applies to customers and banks involved in bank deposits and collections in Ohio. 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 person retaining them must maintain the capacity to furnish legible copies for seven years. Customers have the right to request items or legible copies from the bank. The document also emphasizes the customer’s duty to promptly examine statements or items and notify the bank of any unauthorized payments. Failure to comply with these duties may preclude the customer from asserting unauthorized signatures or alterations against the bank. However, if the bank fails to exercise ordinary care in paying the item and contributes to the loss, the loss is allocated between the customer and the bank. Additionally, if the customer fails to 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 of its provisions.
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
Ohio