Florida Statute 674.406 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

View Entire Chapter

F.S. 674.406

674.406 Customer’s duty to discover and report unauthorized signature or alteration.—

(1) 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.

(2) 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 5 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.

(3) If a bank sends or makes available a statement of account or items pursuant to subsection (1), 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.

(4) If the bank proves that the customer failed, with respect to an item, to comply with the duties imposed on the customer by subsection (3), the customer is precluded from asserting against the bank:

(a) 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

(b) 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 30 days, in which to examine the item or statement of account and notify the bank.

(5) If subsection (4) 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 (3) 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 (4) does not apply.

(6) Without regard to care or lack of care of either the customer or the bank, a customer who does not within 180 days after the statement or items are made available to the customer (subsection (1)) discover and report the customer’s unauthorized signature on or any alteration on the item or who does not, within 1 year after that time, discover and report any unauthorized endorsement 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 s. 674.2081 with respect to the unauthorized signature or alteration to which the preclusion applies.

History.—s. 1, ch. 65-254; s. 43, ch. 92-82; s. 24, ch. 2004-340; s. 107, ch. 2004-390.

Note.—s. 4-406, U.C.C.; supersedes s. 659.37.

F.S. 674.406 on Google Scholar

F.S. 674.406 on Casetext

Amendments to 674.406

Arrestable Offenses / Crimes under Fla. Stat. 674.406

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 674.406.

Annotations, Discussions, Cases:

Cases Citing Statute 674.406

Total Results: 20

CHEESE & GRILL RESTAURANT v. Wachovia Bank

Court: District Court of Appeal of Florida | Date Filed: 2007-10-24

Citation: 970 So. 2d 372, 2007 Fla. App. LEXIS 16708, 2007 WL 3087222

Snippet: the Restaurant admittedly did not do. Subsection 674.406(1) of the Florida Statutes provides that a statement

Bank of America v. PUTNAL SEED AND GRAIN

Court: District Court of Appeal of Florida | Date Filed: 2007-09-18

Citation: 965 So. 2d 300, 63 U.C.C. Rep. Serv. 2d (West) 1029, 2007 Fla. App. LEXIS 14525, 2007 WL 2700163

Snippet: 674. § 674.103(1), Fla. Stat. (2002). Section 674.406(6), Florida Statutes (2002), states that a customer

Coutant v. SunBank South Florida, N.A.

Court: District Court of Appeal of Florida | Date Filed: 2002-04-17

Citation: 813 So. 2d 1037, 2002 Fla. App. LEXIS 4964, 2002 WL 561700

Snippet: governing bank-customer relations contained in section 674.406, Florida Statutes. As those provisions are applicable

Cole Taylor Bank v. Shannon

Court: District Court of Appeal of Florida | Date Filed: 2000-09-01

Citation: 772 So. 2d 546, 2000 WL 1233602

Snippet: example, Cole Taylor contends that under section 674.406, Florida Statutes (1997), Mrs. Shannon was under

Lowenstein v. BARNETT BANK OF SO. FLA.

Court: District Court of Appeal of Florida | Date Filed: 1998-10-21

Citation: 720 So. 2d 596, 1998 WL 764694

Snippet: section 674.406(4) Florida Statutes (1991), moved after January 1, 1993, to section 674.406(6) Florida

Lowenstein v. Barnett Bank of South Florida, N.A.

Court: District Court of Appeal of Florida | Date Filed: 1998-10-01

Citation: 789 So. 2d 1012, 36 U.C.C. Rep. Serv. 2d (West) 836, 1998 Fla. App. LEXIS 12412, 1998 WL 670353

Snippet: customer was precluded from recovery under section 674.406(4) Florida Statutes (1995). After a hearing on

Sun Bank, NA v. Merrill Lynch

Court: District Court of Appeal of Florida | Date Filed: 1994-04-22

Citation: 637 So. 2d 279, 1994 WL 140738

Snippet: Bank next argues that Florida Statutes section 674.406 permits a customer to make a claim upon a drawee

Gerber v. CITY NAT. BANK OF FLORIDA

Court: District Court of Appeal of Florida | Date Filed: 1993-05-04

Citation: 619 So. 2d 328, 20 U.C.C. Rep. Serv. 2d (West) 574, 1993 Fla. App. LEXIS 4938, 1993 WL 140138

Snippet: complaint against a bank as being barred by Section 674.406(4), Florida Statutes (1991). Based upon our finding

Aprile v. Suncoast Schools Federal Credit Union

Court: District Court of Appeal of Florida | Date Filed: 1992-04-29

Citation: 596 So. 2d 1290, 19 U.C.C. Rep. Serv. 2d (West) 253, 1992 Fla. App. LEXIS 4805, 1992 WL 86325

Snippet: statutes of limitations set forth in subsections 674.406(4) and 95.11(3)(k), Florida Statutes (1985). The

Aprile v. SUNCOAST SCH. FED. CREDIT UN.

Court: District Court of Appeal of Florida | Date Filed: 1992-04-29

Citation: 596 So. 2d 1290

Snippet: statutes of limitations set forth in subsections 674.406(4) and 95.11(3)(k), Florida Statutes (1985). The

Podini v. Intercontinental Bank

Court: District Court of Appeal of Florida | Date Filed: 1990-02-27

Citation: 557 So. 2d 229, 1990 Fla. App. LEXIS 1199, 1990 WL 17493

Snippet: So.2d 586 (Fla. 5th DCA 1981); Sections 674.406(1) & 674.-406(4), Florida Statutes (1983).

Burdine-Coakley v. Capital Bank

Court: District Court of Appeal of Florida | Date Filed: 1989-03-28

Citation: 542 So. 2d 1019, 9 U.C.C. Rep. Serv. 2d (West) 1311, 14 Fla. L. Weekly 782, 1989 Fla. App. LEXIS 1577, 1989 WL 27904

Snippet: precluded from this action by Florida Statutes § 674.406 due to his failure to review the statements and

Southern Contract Carpe, Inc. v. Cty. Nat. Bk. of S. Fla.

Court: District Court of Appeal of Florida | Date Filed: 1988-06-21

Citation: 528 So. 2d 42

Snippet: the statute of limitations contained in section 674.406(4), Florida Statutes (1985) (section 4-406(4) of

Coral Gables Federal Savings & Loan Ass'n v. City of Opa-Locka

Court: District Court of Appeal of Florida | Date Filed: 1987-11-24

Citation: 516 So. 2d 989, 12 Fla. L. Weekly 2677, 6 U.C.C. Rep. Serv. 2d (West) 496, 1987 Fla. App. LEXIS 11120

Snippet: reconcile bank statements as required by section 674.406, Florida Statutes (1981)); First Nat’l Bank v.

Key Bank v. First United Land Title Co.

Court: District Court of Appeal of Florida | Date Filed: 1987-01-23

Citation: 502 So. 2d 1280, 12 Fla. L. Weekly 352, 3 U.C.C. Rep. Serv. 2d (West) 657, 1987 Fla. App. LEXIS 6416

Snippet: affirmative defenses were predicated on section 674.406, Florida Statutes (1985). Subsection (1) of that

Patterson Produce Co. v. First National Bank of Florida

Court: District Court of Appeal of Florida | Date Filed: 1985-10-04

Citation: 475 So. 2d 1368, 10 Fla. L. Weekly 2292, 41 U.C.C. Rep. Serv. (West) 1369, 1985 Fla. App. LEXIS 16159

Snippet: favor of the bank on the authority of section 674.406, Florida Statutes (1983), as to count I of the

Lawrence v. CENT. PLAZA BK. AND TRUST CO.

Court: District Court of Appeal of Florida | Date Filed: 1985-05-22

Citation: 469 So. 2d 201, 10 Fla. L. Weekly 1302, 41 U.C.C. Rep. Serv. (West) 182, 1985 Fla. App. LEXIS 14220

Snippet: defenses guaranteed to the County Bank under section 674.406, Florida Statutes (1983), has no merit because

Flagship Bank of Seminole v. Complete Interiors, Inc.

Court: District Court of Appeal of Florida | Date Filed: 1984-05-24

Citation: 450 So. 2d 337, 38 U.C.C. Rep. Serv. (West) 957, 1984 Fla. App. LEXIS 13406

Snippet: trial court's judgment, appellee relies on section 674.406, Florida Statutes (1981)[1]. Subsection (1) of

Ossip-Harris Ins., Inc. v. BARNETT BANK OF SO. FLA., NA

Court: District Court of Appeal of Florida | Date Filed: 1983-03-22

Citation: 428 So. 2d 363, 35 U.C.C. Rep. Serv. (West) 1604, 1983 Fla. App. LEXIS 19309

Snippet: report the forgeries to Barnett pursuant to Section 674.406, Florida Statutes (1981), and that Ossip's negligence

First Nat. Bank v. Keshishian

Court: District Court of Appeal of Florida | Date Filed: 1983-02-23

Citation: 427 So. 2d 313, 35 U.C.C. Rep. Serv. (West) 1250

Snippet: the Bank's defenses under sections 673.406 an 674.406 of the Florida U.C.C.[1] Keshishian, an Iranian