GA Code § 11-4-406 (2021)
2021 Georgia Code|Title 11 - Commercial Code|Article 4 - Bank Deposits and Collections|Part 4 - Relationship Between Payor Bank and Its Customer|§ 11-4-406. Customer's Duty to Discover and Report Unauthorized Signature or Alteration

  A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in the statement of account sufficient to allow the customer reasonably to identify the items paid. The statement of account provides sufficient information if the item is described by item number, amount, and date of payment.   If the items are not returned to the customer, the person retaining the items shall either retain the items or, if the items are destroyed, maintain the capacity to furnish legible copies of the items until the expiration of seven years after receipt of the items. A customer may request an item from the bank that paid the item, and that bank must provide in a reasonable time either the item or, if the item has been destroyed or is not otherwise obtainable, a legible copy of the item.   If a bank sends or makes available a statement of account or items pursuant to subsection (a) of this Code section, 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.   If the bank proves that the customer failed, with respect to an item, to comply with the duties imposed on the customer by subsection (c) of this Code section, the customer is precluded from asserting against the bank:   The customer's unauthorized signature or any alteration on the item, if the bank also proves that it suffered a loss by reason of the failure; and   The customer's unauthorized signature or alteration by the same wrongdoer on any other item paid in good faith by the bank if the payment was made before the bank received notice from the customer of the unauthorized signature or alteration and after the customer had been afforded a reasonable period of time, not exceeding 30 days, in which to examine the item or statement of account and notify the bank.     If subsection (d) of this Code section applies and the customer proves that the bank failed to exercise ordinary care in paying the item and that the failure substantially contributed to loss, the loss is allocated between the customer precluded and the bank asserting the preclusion according to the extent to which the failure of the customer to comply with subsection (c) of this Code section and the failure of the bank to exercise ordinary care contributed to the loss. If the customer proves that the bank did not pay the item in good faith, the preclusion under subsection (d) of this Code section does not apply.   Without regard to care or lack of care of either the customer or the bank, a customer who does not within 60 days after the statement or items are made available to the customer (subsection (a) of this Code section) discover and report the customer's unauthorized signature on or any alteration on the face of the item or who does not within one year from that time discover and report any unauthorized indorsement or alteration on the back of the item is precluded from asserting against the bank the unauthorized signature, indorsement, or alteration.  If there is a preclusion under this subsection, the payor bank may not recover for breach of warranty under Code Section 11-4-208 with respect to the unauthorized signature or alteration to which the preclusion applies.     (Code 1933, § 109A-4 - 406, enacted by Ga. L. 1962, p. 156, § 1; Ga. L. 1963, p. 188, § 13; Ga. L. 1996, p. 1306, § 13.)   Code Commission notes.   - Pursuant to Code Section 28-9-5, in 1996, a comma was inserted following "indorsement" near the end of subsection (f).   Cross references.   - Duty of state officials and employees to notify depositories of unauthorized signatures or alterations appearing on paid items, § 50-17-65.   Law reviews.   - For article on the 1963 amendment (Ga. L. 1963, p. 188) to the Georgia Uniform Commercial Code, see 14 Mercer L. Rev. 378 (1963). For annual survey article on commercial law, see 50 Mercer L. Rev. 193 (1998). For note, "Drawers: Check for Missing Endorsements on Joint Payee Checks," in light of Trust Co. Bank v. Atlanta IBM Employees Fed. Credit Union, 245 Ga. 262, 264 S.E.2d 202 (1980), see 32 Mercer L. Rev. 407 (1980). For comment on Perini Corp. v. First Nat'l Bank, 553 F.2d 398 (5th Cir. 1977), see 27 Emory L.J. 393 (1978).   JUDICIAL DECISIONS   ANALYSIS    General Consideration   Sixty-Day and One-Year Notice Requirements    RESEARCH REFERENCES   Am. Jur. 2d.   - 10 Am. Jur. 2d, Banks and Financial Institutions, §§ 515-519, 631, 649. 12 Am. Jur. 2d, Bills and Notes, § 586.   6A Am. Jur. Pleading and Practice Forms, Commercial Code, § 4:212.   C.J.S.   - 9 C.J.S., Banks and Banking, §§ 417, 418, 424, 434 et seq.   U.L.A.   - Uniform Commercial Code (U.L.A.) § 4-406.   ALR.    - Right of drawee bank to charge back a credit given on a forged check, 5 A.L.R. 1566.    Right of drawee of forged check or draft to recover money paid thereon, 12 A.L.R. 1089; 121 A.L.R. 1056.    Payment of check upon forged or unauthorized indorsement as affecting the right of true owner against the bank, 14 A.L.R. 764; 69 A.L.R. 1076; 137 A.L.R. 874.    Examination of account, pass book, or canceled checks by bank depositor, 15 A.L.R. 159; 67 A.L.R. 1121; 103 A.L.R. 1147.    Altering receipt, canceled check, or other voucher as forgery, 26 A.L.R. 1058.    False pretense or confidence game through means of worthless check or draft, 35 A.L.R. 344; 174 A.L.R. 173.    Duty of bank to prior parties to the paper to apply deposit to credit of endorser on paper owned by bank, 37 A.L.R. 578.    Estoppel by delay after knowledge in disclosing forgery of commercial paper, 50 A.L.R. 1374.    Duty of depositor to turn over to bank forged checks, or checks with forged endorsements, which have been paid by bank, 60 A.L.R. 527.    Who must bear loss as between drawer induced by fraud of employee or agent to issue check payable to nonexisting person or a person having no interest in the proceeds thereof, and one who cashes or pays it on the forged indorsement by such employee or agent of the name of such ostensible payee, 99 A.L.R. 439.    Examination of accounts, pass books, or canceled checks by bank depositors, 103 A.L.R. 1147.   Necessity of pleading that maker or drawer of check was given notice of its dishonor by bank, 6 A.L.R.2d 985.   Negligence in drawing check which facilitates alteration as to amount as affecting drawee bank's liability, 42 A.L.R.2d 1070.   Construction and effect of statute relieving bank from liability to depositor for payment of forged or raised checks unless within specified time after return of voucher representing payment he notifies banks as to forgery or raising, 50 A.L.R.2d 1115.   Rights and liabilities of drawee bank, as to persons other than drawer, with respect to uncertified paid check which was altered, 75 A.L.R.2d 611.   Payee's prior negligence facilitating forging of endorsement as precluding recovery from bank paying check, 87 A.L.R.2d 638.   Right and remedy of drawer of check against collecting bank which receives it on forged endorsement and collects it from drawee bank, 99 A.L.R.2d 637.   Avoidance of bank's check certification secured by fraud, 100 A.L.R.2d 1197.   Bank's liability for payment or withdrawal on less than required number of signatures, 7 A.L.R.4th 655.   Construction and application of UCC § 4-406, requiring customer to discover and report unauthorized signature, in cases involving bank's payment of check or withdrawal on less than required number of signatures, 7 A.L.R.4th 1111.