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Can you summarize WIST 404.406?
Customer's duty to discover and report unauthorized signature or alteration.
Short Summary
This legal document, part of the Wisconsin Statutes Uniform Commercial Code, specifically addresses the duty of customers and banks regarding the discovery and reporting of unauthorized signatures or alterations. According to the document, if a bank sends or makes available a statement of account or items to a customer, the customer must promptly examine the statement or items to determine if any payment was unauthorized due to an 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 claims against the bank related to unauthorized signatures or alterations. The document also discusses the allocation of loss between the customer and the bank based on their respective failures to comply with the duties. Additionally, it establishes a one-year time limit for customers to discover and report unauthorized signatures or alterations, after which they are precluded from asserting such claims against the bank.
Whom does it apply to?
Customers and banks
What does it govern?
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
Wisconsin