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Can you summarize TNCO 47-4-406?
Relationship Between Payor Bank and Its Customer > Customer's duty to review statements of account.
Short Summary
This legal document governs the duty of customers to review statements of account provided by banks. According to the document, if a bank sends or makes available a statement of account showing payment of items for the customer’s account, the bank must either return the items paid or provide sufficient information in the statement to allow the customer to identify the items paid. The customer is required to exercise reasonable promptness in examining the statement or items to determine any unauthorized payments, alterations, or missing or incorrectly credited deposits. If the customer fails to comply with these duties and the bank proves that it suffered a loss as a result, the customer may be precluded from asserting certain claims against the bank. The document also addresses the customer’s right to request items from the bank and the bank’s obligation to provide them in a reasonable time. Additionally, it establishes a one-year time limit for the customer to discover and report any occurrences of unauthorized payments, alterations, or missing or incorrectly credited deposits. Failure to report within this time limit may preclude the customer from asserting any claim against the bank related to the occurrence. Overall, this document outlines the responsibilities and potential consequences for customers in reviewing and reporting discrepancies in their bank statements.
Whom does it apply to?
Customers of banks
What does it govern?
Customer's duty to review statements of account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Tennessee