It has been a long-standing precedent, I believe, that banks could tweak the one-year deadline for verification of transactions by putting language in their deposit contracts. The New York court appears to have decided to take a left turn away from years of precedent. Their ruling should not be binding on courts in other states, particularly since NY hasn't yet adopted the 1990 amendments to articles 3 and 4. However, state courts do typically acknowledge rulings from other jurisdictions when it comes to the UCC (although they may not adopt them themselves).
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8