{"data":{"id":"us-ok/okla.-stat.-tit.-12a-12a-4-406","jurisdiction":"us-ok","citation":"Okla. Stat. tit. 12A, § 12A-4-406","heading":"Customer's Duty to Discover and Report Unauthorized","body":"Signature or Alteration.\n\nCUSTOMER'S DUTY TO DISCOVER AND REPORT\n\nUNAUTHORIZED SIGNATURE OR ALTERATION\n\n(a) A bank that sends or makes available to a customer a\n\nstatement of account showing payment of items for the account shall\n\neither return or make available to the customer the items paid or\n\nprovide information in the statement of account sufficient to allow\n\nthe customer reasonably to identify the items paid. The statement\n\nof account provides sufficient information if the item is described\n\nby item number, amount, and date of payment.\n\n(b) If the items are not returned to the customer, the person\n\nretaining the items shall either retain the items or, if the items\n\nare destroyed, maintain the capacity to furnish legible copies of\n\nthe items until the expiration of seven (7) years after receipt of\n\nthe items. A customer may request an item from the bank that paid\n\nthe item, and that bank must provide in a reasonable time either the\n\nitem or, if the item has been destroyed or is not otherwise\n\nobtainable, a legible copy of the item.\n\n(c) If a bank sends or makes available a statement of account\n\nor items pursuant to subsection (a) of this section, the customer\n\nmust exercise reasonable promptness in examining the statement or\n\nthe items to determine whether any payment was not authorized\n\nbecause of an alteration of an item or because a purported signature\n\nby or on behalf of the customer was not authorized. If, based on\n\nthe statement or items provided, the customer should reasonably have\n\ndiscovered the unauthorized payment, the customer must promptly\n\nnotify the bank of the relevant facts.\n\n(d) If the bank proves that the customer failed, with respect\n\nto an item, to comply with the duties imposed on the customer by\n\nsubsection (c) of this section, the customer is precluded from\n\nasserting against the bank:\n\n(1) The customer's unauthorized signature or any\n\nalteration on the item, if the bank also proves that\n\nit suffered a loss by reason of the failure; and\n\n(2) The customer's unauthorized signature or alteration by\n\nthe same wrongdoer on any other item paid in good\n\nfaith by the bank if the payment was made before the\n\nbank received notice from the customer of the\n\nunauthorized signature or alteration and after the\n\ncustomer had been afforded a reasonable period of\n\ntime, not exceeding thirty (30) days, in which to\n\nexamine the item or statement of account and notify\n\nthe bank.\n\n(e) If subsection (d) of this section applies and the customer\n\nproves that the bank failed to exercise ordinary care in paying the\n\nitem and that the failure substantially contributed to loss, the\n\nloss is allocated between the customer precluded and the bank\n\nasserting the preclusion according to the extent to which the\n\nfailure of the customer to comply with subsection (c) of this\n\nsection and the failure of the bank to exercise ordinary care\n\ncontributed to the loss. If the customer proves that the bank did\n\nnot pay the item in good faith, the preclusion under subsection (d)\n\nof this section does not apply.\n\n(f) Without regard to care or lack of care of either the\n\ncustomer or the bank, a customer who does not within one (1) year\n\nafter the statement or items are made available to the customer\n\n(subsection (a) of this section) discover and report the customer's\n\nunauthorized signature on or any alteration on the item is precluded\n\nfrom asserting against the bank the unauthorized signature or\n\nalteration. If there is a preclusion under this subsection, the\n\npayor bank may not recover for breach of warranty under Section 4-\n\n208 of this title with respect to the unauthorized signature or\n\nalteration to which the preclusion applies.","path":["OK Code","Title 12A"],"source_url":"https://www.oklegislature.gov/OK_Statutes/CompleteTitles/os12A.pdf","current_through":"2026-08-14","vintage":"open-us-law v2026.08, retrieved 2026-09-14","retrieved_at":"2026-09-14T18:32:36Z","sha256":"ececeb3fe3b83054771fc83d5125c99fe4efa76caf6391834ccab7eb92784310","source_id":"us-ok","stale":false,"prev":"us-ok/okla.-stat.-tit.-12a-12a-4-405","next":"us-ok/okla.-stat.-tit.-12a-12a-4-407"},"notice":"GroundRules: Original legal text. Not legal advice."}