I work at a 60MM community bank. When doing statements we have always checked for forged signatures. We are going to an outside servicers and they offer statment prep but of course they cannot check for forged signatures. It is my understanding that due to technology changes, outside processors, etc. that now it is the customers' responsibility to check for forged signatures and report this to the bank. How is everyone else doing this? Some of our management team are resistant to change since we have always done our own statements, but we are getting large enough that taking the time to check for forgeries is getting burdensom. Any references to UCC etc. would be helpful.

In Texas we use the Business and Commerce Code, our version of the UCC. They are very similar.

Look to 4.406
(c) If a bank sends or makes available a statement of account or items pursuant to Subsection (a), the customer must exercise reasonable promptness in examining the statement or the items to determine whether any payment was not authorized because of an alteration of an item or because a purported signature by or on behalf of the customer was not authorized. If, based on the statement or items provided, the customer should reasonably have discovered the unauthorized payment, the customer must promptly notify the bank of the relevant facts.

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Andy Zavoina
Opinions stated are not necessarily that of my employer.