The model language of the Uniform Commercial Code gives a customer up to one year in most states to report a forged or counterfeit check. This timeframe may be shorted by your account agreement. Unless your institution is planning to assert a claim against your customer stating that their negligence contributed to the loss, then yes. provided that notification was timely under the UCC and your account agreement you are liable to your customer for honoring checks that were not properly payable.
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