§12A-4-406.

§12A-4-406.
   
                   CUSTOMER'S DUTY TO DISCOVER AND REPORT
                                      
                    UNAUTHORIZED SIGNATURE OR ALTERATION
                                      
   (a) 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.
   
   (b) 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 (7) 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.
   
   (c) If a bank sends or makes available a statement of account or items
   pursuant to subsection (a) of this 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.
   
   (d) 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 section, the customer is precluded from asserting against
   the bank:
   
   (1) 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
   
   (2) 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 thirty (30)
   days, in which to examine the item or statement of account and notify
   the bank.
   
   (e) If subsection (d) of this 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 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 section does not apply.
   
   (f) Without regard to care or lack of care of either the customer or
   the bank, a customer who does not within one (1) year after the
   statement or items are made available to the customer (subsection (a)
   of this section) discover and report the customer's unauthorized
   signature on or any alteration on the item is precluded from asserting
   against the bank the unauthorized signature or alteration. If there is
   a preclusion under this subsection, the payor bank may not recover for
   breach of warranty under Section 4-208 of this title with respect to
   the unauthorized signature or alteration to which the preclusion
   applies.