A thief stole Art's checkbook and forged Art's name as drawer of a check. The drawee paid the check in good faith and sent it to Art with the monthly statement on January 3, 2013. The thief forged other checks during February and March of 2013, which the drawee in good faith paid. All paid checks were sent to Art with monthly statements. On May 25, 2014, Art discovered all of the forgeries and notified the drawee. For which check(s) is Art entitled to be reimbursed?

Question

Quizplus · Accepted Answer

Under the Uniform Commercial Code (UCC), a bank customer typically has up to one year from the statement date to report any unauthorized signatures or alterations for reimbursement. Since Art discovered and reported the forgeries more than a year after receiving the statements, he is not entitled to reimbursement for any of the checks.

A Thief Stole Art's Checkbook and Forged Art's Name as Drawer