{"formats":[{"name":"JSON","format":"json","url":"\/downloads\/2025\/code-json\/8.4-406.json"},{"name":"Plain Text","format":"text","url":"\/downloads\/2025\/code-text\/8.4-406.txt"},{"name":"XML","format":"xml","url":"\/downloads\/2025\/code-xml\/8.4-406.xml"},{"name":"HTML","format":"html","url":"\/downloads\/2025\/code-html\/8.4-406.html"}],"law_id":56628,"edition_id":1,"section_id":56628,"structure_id":13333,"section_number":"8.4-406","catch_line":"Customer’s duty to discover and report unauthorized signature or alteration","history":"Code 1950, \u00a7\u00a7 6-74, 6-75; 1964, c. 219; 1978, c. 75; 1992, c. 693.","full_text":"a\n\nA 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\n\nIf 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 years after receipt of the items. A customer may request an item from the bank that paid the item, and the 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\n\nIf a bank sends or makes available a statement of account or items pursuant to subsection (a), 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\n\nIf the bank proves that the customer failed with respect to an item to comply with the duties imposed on the customer by subsection (c) the customer is precluded from asserting against the bank:1\n\nthe 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; and2\n\nthe 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 days, in which to examine the item or statement of account and notify the bank.e\n\nIf subsection (d) 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) and the failure of the bank to exercise ordinary care contributed to the loss. If the customer proves that the bank did not pay an item in good faith, the preclusion under subsection (d) does not apply.f\n\nWithout regard to care or lack of care of either the customer or the bank, a customer who does not within one year after the statement or items are made available to the customer (subsection (a)) 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 § 8.4-207.2 with respect to the unauthorized signature or alteration to which the preclusion applies.","order_by":null,"text":{"0":{"id":207215,"text":"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.","type":"section","prefixes":["a"],"prefix":"a","entire_prefix":"a","prefix_anchor":"a","level":1,"next_prefix":"b"},"1":{"id":207216,"text":"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 years after receipt of the items. A customer may request an item from the bank that paid the item, and the 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.","type":"section","prefixes":["b"],"prefix":"b","entire_prefix":"b","prefix_anchor":"b","level":1,"prior_prefix":"a","next_prefix":"c"},"2":{"id":207217,"text":"If a bank sends or makes available a statement of account or items pursuant to subsection (a), 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.","type":"section","prefixes":["c"],"prefix":"c","entire_prefix":"c","prefix_anchor":"c","level":1,"prior_prefix":"b","next_prefix":"d"},"3":{"id":207218,"text":"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) the customer is precluded from asserting against the bank:","type":"section","prefixes":["d"],"prefix":"d","entire_prefix":"d","prefix_anchor":"d","level":1,"prior_prefix":"c","next_prefix":"d1"},"4":{"id":207219,"text":"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","type":"section","prefixes":["d","1"],"prefix":"1","entire_prefix":"d1","prefix_anchor":"d1","level":2,"prior_prefix":"d","next_prefix":"d2"},"5":{"id":207220,"text":"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 days, in which to examine the item or statement of account and notify the bank.","type":"section","prefixes":["d","2"],"prefix":"2","entire_prefix":"d2","prefix_anchor":"d2","level":2,"prior_prefix":"d1","next_prefix":"e"},"6":{"id":207221,"text":"If subsection (d) 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) and the failure of the bank to exercise ordinary care contributed to the loss. If the customer proves that the bank did not pay an item in good faith, the preclusion under subsection (d) does not apply.","type":"section","prefixes":["e"],"prefix":"e","entire_prefix":"e","prefix_anchor":"e","level":1,"prior_prefix":"d2","next_prefix":"f"},"7":{"id":207222,"text":"Without regard to care or lack of care of either the customer or the bank, a customer who does not within one year after the statement or items are made available to the customer (subsection (a)) 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 § 8.4-207.2 with respect to the unauthorized signature or alteration to which the preclusion applies.","type":"section","prefixes":["f"],"prefix":"f","entire_prefix":"f","prefix_anchor":"f","level":1,"prior_prefix":"e"}},"ancestry":[{"id":13333,"edition_id":1,"name":"Relationship Between Payor Bank and Its Customer","identifier":"4","label":"part","depth":2,"order_by":1,"parent_id":12768,"metadata":{},"date_created":"2026-06-26 03:44:39","date_modified":"2026-06-26 03:44:39","permalink":{"id":283139,"object_type":"structure","relational_id":13333,"identifier":"4","token":"8.4\/4","url":"\/8.4\/4\/","edition_id":1,"permalink":0,"preferred":1}},{"id":12768,"edition_id":1,"name":"Commercial Code \u2014 Bank Deposits and Collections","identifier":"8.4","label":"title","depth":1,"order_by":1,"parent_id":null,"metadata":{},"date_created":"2026-06-26 03:43:52","date_modified":"2026-06-26 03:43:52","permalink":{"id":282995,"object_type":"structure","relational_id":12768,"identifier":"8.4","token":"8.4","url":"\/8.4\/","edition_id":1,"permalink":0,"preferred":1}}],"structure_contents":[{"id":69237,"structure_id":13333,"section_number":"8.4-401","catch_line":"When bank may charge customer's account","url":"\/8.4-401\/","token":"8.4\/4\/8.4-401","metadata":false},{"id":54315,"structure_id":13333,"section_number":"8.4-402","catch_line":"Bank's liability to customer for wrongful dishonor; time of determining insufficiency of account","url":"\/8.4-402\/","token":"8.4\/4\/8.4-402","metadata":false},{"id":67226,"structure_id":13333,"section_number":"8.4-403","catch_line":"Customer's right to stop payment; burden of proof of loss","url":"\/8.4-403\/","token":"8.4\/4\/8.4-403","metadata":false},{"id":86835,"structure_id":13333,"section_number":"8.4-404","catch_line":"Bank not obligated to pay check more than six months old","url":"\/8.4-404\/","token":"8.4\/4\/8.4-404","metadata":false},{"id":78330,"structure_id":13333,"section_number":"8.4-405","catch_line":"Death or incompetence of customer","url":"\/8.4-405\/","token":"8.4\/4\/8.4-405","metadata":false},{"id":56628,"structure_id":13333,"section_number":"8.4-406","catch_line":"Customer's duty to discover and report unauthorized signature or alteration","url":"\/8.4-406\/","token":"8.4\/4\/8.4-406","metadata":false},{"id":57675,"structure_id":13333,"section_number":"8.4-407","catch_line":"Payor bank's right to subrogation on improper payment","url":"\/8.4-407\/","token":"8.4\/4\/8.4-407","metadata":false}],"previous_section":{"id":78330,"structure_id":13333,"section_number":"8.4-405","catch_line":"Death or incompetence of customer","url":"\/8.4-405\/","token":"8.4\/4\/8.4-405","metadata":false},"next_section":{"id":57675,"structure_id":13333,"section_number":"8.4-407","catch_line":"Payor bank's right to subrogation on improper payment","url":"\/8.4-407\/","token":"8.4\/4\/8.4-407","metadata":false},"metadata":false,"official_url":"https:\/\/law.lis.virginia.gov\/vacode\/8.4-406\/","history_text":"

The record of this law\u2019s original creation isn\u2019t available online. It has been modified 3 times. Those modifications are cataloged by \u201cThe Acts of Assembly,\u201d a state publication, by year and chapter. Those modifications that can be read on the General Assembly\u2019s website will be linked accordingly. Those modifications are as follows: in 1964, chapter 219; in 1978, chapter 75; in 1992, chapter 693.<\/p>","references":[{"id":63742,"section_number":"8.3A-417","catch_line":"Presentment warranties","order_by":null,"url":"\/8.3A-417\/"},{"id":80890,"section_number":"8.4-207.2","catch_line":"Presentment warranties","order_by":null,"url":"\/8.4-207.2\/"}],"refers_to":[{"id":80890,"section_number":"8.4-207.2","catch_line":"Presentment warranties","order_by":null,"url":"\/8.4-207.2\/"}],"permalink":{"id":283161,"object_type":"law","relational_id":56628,"identifier":"8.4-406","token":"8.4\/4\/8.4-406","url":"\/8.4-406\/","edition_id":1,"permalink":0,"preferred":1},"url":"\/8.4-406\/","token":"8.4\/4\/8.4-406","dublin_core":{"Title":"Customer’s duty to discover and report unauthorized signature or alteration","Type":"Text","Format":"text\/html","Identifier":"\u00a7 8.4-406","Relation":"Code of Virginia"},"html":"\n\t\t\t\t\t\t

a.<\/span> A bank<\/span> 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

b.<\/span> 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 years after receipt of the items. A customer may request an item from the bank<\/span> that paid the item, and the bank<\/span> 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. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

c.<\/span> If a bank<\/span> sends or makes available a statement of account or items pursuant to subsection (a), 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<\/span> of the relevant facts<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

d.<\/span> If the bank<\/span> proves that the customer failed with respect to an item to comply with the duties imposed on the customer by subsection (c) the customer is precluded from asserting against the bank<\/span>: <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

1.<\/span> the customer’s unauthorized signature or any alteration on the item, if the bank<\/span> also proves that it suffered a loss by reason of the failure; and <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

2.<\/span> the customer’s unauthorized signature or alteration by the same wrongdoer on any other item paid in good faith by the bank<\/span> if the payment was made before the bank<\/span> 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 days, in which to examine the item or statement of account and notify the bank<\/span>. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

e.<\/span> If subsection (d) applies and the customer proves that the bank<\/span> 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<\/span> asserting the preclusion according to the extent to which the failure of the customer to comply with subsection (c) and the failure of the bank<\/span> to exercise ordinary care contributed to the loss. If the customer proves that the bank<\/span> did not pay an item in good faith, the preclusion under subsection (d) does not apply. <\/i><\/a><\/p><\/section>\n\t\t\t\t\t\t

f.<\/span> Without regard to care or lack of care of either the customer or the bank, a customer who does not within one year after the statement or items are made available to the customer (subsection (a)) 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<\/span> may not recover for breach of warranty under § 8.4-207.2<\/a> with respect to the unauthorized signature or alteration to which the preclusion applies. <\/i><\/a><\/p><\/section>","plain_text":" CODE OF VIRGINIA\n\nCUSTOMER’S DUTY TO DISCOVER AND REPORT UNAUTHORIZED SIGNATURE OR\nALTERATION (\u00a7 8.4-406)\n\na. A bank that sends or makes available to a customer a statement of account\nshowing payment of items for the account shall either return or make available\nto the customer the items paid or provide information in the statement of\naccount sufficient to allow the customer reasonably to identify the items paid.\nThe statement of account provides sufficient information if the item is\ndescribed by item number, amount, and date of payment.\n\nb. If the items are not returned to the customer, the person retaining the items\nshall either retain the items or, if the items are destroyed, maintain the\ncapacity to furnish legible copies of the items until the expiration of seven\nyears after receipt of the items. A customer may request an item from the bank\nthat paid the item, and the bank must provide in a reasonable time either the\nitem or, if the item has been destroyed or is not otherwise obtainable, a\nlegible copy of the item.\n\nc. If a bank sends or makes available a statement of account or items pursuant\nto subsection (a), the customer must exercise reasonable promptness in examining\nthe statement or the items to determine whether any payment was not authorized\nbecause of an alteration of an item or because a purported signature by or on\nbehalf of the customer was not authorized. If, based on the statement or items\nprovided, the customer should reasonably have discovered the unauthorized\npayment, the customer must promptly notify the bank of the relevant facts.\n\nd. If the bank proves that the customer failed with respect to an item to comply\nwith the duties imposed on the customer by subsection (c) the customer is\nprecluded from asserting against the bank:\n\n 1. the customer’s unauthorized signature or any alteration on the item,\n if the bank also proves that it suffered a loss by reason of the failure; and\n\n 2. the customer’s unauthorized signature or alteration by the same\n wrongdoer on any other item paid in good faith by the bank if the payment was\n made before the bank received notice from the customer of the unauthorized\n signature or alteration and after the customer had been afforded a reasonable\n period of time, not exceeding thirty days, in which to examine the item or\n statement of account and notify the bank.\n\ne. If subsection (d) applies and the customer proves that the bank failed to\nexercise ordinary care in paying the item and that the failure substantially\ncontributed to loss, the loss is allocated between the customer precluded and\nthe bank asserting the preclusion according to the extent to which the failure\nof the customer to comply with subsection (c) and the failure of the bank to\nexercise ordinary care contributed to the loss. If the customer proves that the\nbank did not pay an item in good faith, the preclusion under subsection (d) does\nnot apply.\n\nf. Without regard to care or lack of care of either the customer or the bank, a\ncustomer who does not within one year after the statement or items are made\navailable to the customer (subsection (a)) discover and report the\ncustomer’s unauthorized signature on or any alteration on the item is\nprecluded from asserting against the bank the unauthorized signature or\nalteration. If there is a preclusion under this subsection, the payor bank may\nnot recover for breach of warranty under § 8.4-207.2 with respect to the\nunauthorized signature or alteration to which the preclusion applies.\n\nHISTORY: Code 1950, \u00a7\u00a7 6-74, 6-75; 1964, c. 219; 1978, c. 75; 1992, c. 693.","edition":{"id":1,"name":"2025","slug":"2025","date_created":"2026-06-21 22:39:22","date_modified":"2026-06-21 22:39:22","current":1,"order_by":1,"last_import":null}}