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Can you summarize RIGL 6A-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 State of Rhode Island General Laws, specifically addresses the duty of customers to discover and report unauthorized signatures or alterations in bank transactions. According to the document, if a bank sends or makes available a statement of account or items to a customer, the customer must exercise reasonable promptness in examining the statement or items to determine if any payment was unauthorized due to 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 these duties may preclude the customer from asserting against the bank the unauthorized signature or alteration. The document also outlines provisions related to the bank’s responsibility, allocation of loss, and time limitations for discovering and reporting unauthorized signatures or alterations.
Whom does it apply to?
Customers of 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
Rhode Island