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Can you summarize VACV 8.4-406?
Customer's duty to discover and report unauthorized signature or alteration
Short Summary
This legal document, part of the Code of Virginia’s Commercial Code Bank Deposits and Collections, outlines the duties and responsibilities of customers and banks regarding the discovery and reporting of unauthorized signatures or alterations. 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 are required to promptly examine the statements or items and notify the bank if they discover 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 failed to exercise ordinary care in paying the item and the failure contributed to the loss, the loss is allocated between the customer and the bank. Additionally, if the customer does not 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.
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
Virginia