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Can you summarize WARC 62A.4-406?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > Customer's duty to discover and report unauthorized signature or alteration.
Short Summary
This legal document, part of the Revised Code of Washington, specifically addresses the relationship between a payor bank and its customer in the context of bank deposits and collections. It outlines the duties and responsibilities of the bank in providing statements of account to the customer, including the requirement to return or make available the items paid, copies of the items paid, or sufficient information in the statement of account to allow the customer to identify the items paid. The document also emphasizes the customer’s duty to promptly examine the statement or items provided by the bank and report any unauthorized payment resulting from an alteration of an item or an unauthorized signature. Failure to comply with these duties may preclude the customer from asserting claims against the bank. The document further discusses the allocation of loss between the customer and the bank in cases where the bank failed to exercise ordinary care in paying the item. Additionally, it sets a time limit for customers to discover and report unauthorized signatures, alterations, or indorsements, beyond which they may be precluded from asserting such claims against the bank. Overall, this document establishes the obligations and rights of both the bank and the customer in relation to bank deposits and collections.
Whom does it apply to?
Customers of a bank
What does it govern?
Relationship between payor bank and its customer in the context of bank deposits and collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Washington