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Can you summarize WVCO 46-4-406?
BANK DEPOSITS AND COLLECTIONS. > Customer's duty to discover and report unauthorized signature or alteration.
Short Summary
This legal document, part of the West Virginia Code’s Uniform Commercial Code on 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 either return the paid items or provide sufficient information for the customer to identify the items. 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 provided and notify the bank if any unauthorized payments are discovered. Failure to comply with these duties may preclude the customer from asserting unauthorized signatures or alterations against the bank. The document also addresses the allocation of loss between the customer and the bank based on their respective failures. 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. The document also requires banks to offer at least one account that provides for the return of all items or legible copies, and provides a certain number of free copies per year for accounts that do not offer this feature. Overall, this document sets forth the obligations and rights of customers and banks in relation to unauthorized signatures or alterations in bank transactions.
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
West Virginia