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).
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John S. Burnett
BankersOnline.com
Fighting for Compliance since 1976
Bankers' Threads User #8