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Can you summarize WYST 34.1-4-406?
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 Wyoming Statutes’ Uniform Commercial Code, specifically addresses the duty of customers to discover and report unauthorized signatures or alterations in bank transactions. According to the document, banks are required to either return or provide sufficient information about paid items in a customer’s statement of account. If the items are not returned, the bank must retain them or maintain legible copies for seven years. Customers are expected to promptly examine the statement or items and notify the bank if they discover any unauthorized payments due to alterations or unauthorized signatures. Failure to comply with this duty 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 may be allocated between the customer and the bank. Additionally, if the customer does not discover and report unauthorized signatures or alterations within one year, they may be precluded from asserting such claims against the bank. The document does not mention specific penalties for non-compliance or violations.
Whom does it apply to?
Customers of 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
Wyoming