is a bank liable for cashing a forged check?
The bank is liable for a limited time for forged checks if it failed to verify Codyâs signature properly. If Martha managed to forge Codyâs signature well, the bank has more of a leg to stand on, but if the forgery is very poorly done and bears no resemblance whatsoever to Codyâs normal signature, the bank failed to do due diligence.