Am I correct in the following scenerio?
Last edited by mbguard; 01/24/03 04:46 PM.
1. If an account has a forged signature on a check, we must follow the midnight rule for returning said check.
2. Our signature card agreement give the customer 60 days to report the forgery after receiving his statement.
3. UCC Article 4 give the customer one year after the statement to assert a claim against the bank for the unauthorized signature.
4. If we do not return the forged check within the 24 hour period, we can try within the next 60 day window, but if receiving bank refuses, it is our loss.
5. If after 60 days, customer brings it in within the one year, it is bank's discretion whether to refund or not. We would require an affidavit for the forgery and persue legal actions against the accused.