Freese v. Regions Bank, N.A.

Because I believe that the trial court erred in finding that the contractual period in OCGA § 11-4-406 (f) could be shortened without regard to either party’s care or lack of care, I must respectfully dissent.

Article 4 of the Uniform Commercial Code, Bank Deposits and Collections, requires that the customer “exercise reasonable promptness” to discover forgeries and notify the bank, OCGA § 11-4-406 (c), and then, in certain circumstances, the bank will not be liable for forgeries if the customer did not fulfill these duties. OCGA § 11-4-406 (d). The loss is allocated between the customer and…