Even if a customer's negligence substantially contributes to a forgery of the drawer's signature on a check, the bank is obliged to re-credit the customer's account for the amount of the check.

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Banks are generally not liable for forged checks if the customer's negligence substantially contributed to the forgery. The Uniform Commercial Code (UCC) provides that a bank may charge a customer’s account for a check only if it is properly payable, which includes being authorized by the customer. If the customer’s negligence contributed to the forgery, the bank may not be obligated to re-credit the customer's account.

Even If a Customer's Negligence Substantially Contributes to a Forgery