Florida Statute 674.406 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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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: Fla. Dist. Ct. App. | Date Filed: 2007-10-24T00:53:00-07:00

Citation: 970 So. 2d 372

Snippet: the Restaurant admittedly did not do. Subsection 674.406(1) of the Florida Statutes provides that a statement… endorsement on the back of the checks. [2] § 674.406(2), Fla. Stat. (1999). [3] Although our research

Bank of America v. PUTNAL SEED AND GRAIN

Court: Fla. Dist. Ct. App. | Date Filed: 2007-09-18T00:53:00-07:00

Citation: 965 So. 2d 300

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: Fla. Dist. Ct. App. | Date Filed: 2002-04-17T00:00:00-07:00

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: Fla. Dist. Ct. App. | Date Filed: 2000-09-01T00:53:00-07:00

Citation: 772 So. 2d 546

Snippet: example, Cole Taylor contends that under section 674.406, Florida Statutes (1997), Mrs. Shannon was under… of appellant's interpretation of section 674.406 or its constructive knowledge theory, even if Cole

Lowenstein v. BARNETT BANK OF SO. FLA.

Court: Fla. Dist. Ct. App. | Date Filed: 1998-10-21T00:53:00-07:00

Citation: 720 So. 2d 596

Snippet: section 674.406(4) Florida Statutes (1991), moved after January 1, 1993, to section 674.406(6) Florida…judgment was issued in Barnett's favor. Section 674.406(6) provides as did its predecessor: Without regard…the preclusion applies. As mandated by section 674.406, the customer had an obligation to examine bank

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

Court: Fla. Dist. Ct. App. | Date Filed: 1998-10-01T00:00:00-07:00

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 …judgment was issued in Barnett’s favor. Section 674.406 provides in part: (3) If a bank sends or makes …account and notify the bank. As mandated by section 674.406, the customer had an obligation to examine bank

Sun Bank, NA v. Merrill Lynch

Court: Fla. Dist. Ct. App. | Date Filed: 1994-04-22T00:53:00-07:00

Citation: 637 So. 2d 279

Snippet: Bank next argues that Florida Statutes section 674.406 permits a customer to make a claim upon a drawee…Bank's argument lacks merit because section 674.406 allows a claim to be made; it does not authorize

Gerber v. CITY NAT. BANK OF FLORIDA

Court: Fla. Dist. Ct. App. | Date Filed: 1993-05-04T00:53:00-07:00

Citation: 619 So. 2d 328

Snippet: that the suit was barred by Section 674.406(4). Section 674.406(4), which is based upon U.C.C. Section…significantly from that used in Section 674.406(4)). Section 674.406 only imposes on bank customers, who …complaint against a bank as being barred by Section 674.406(4), Florida Statutes (1991). Based upon our finding…finding that the one-year time limitation in Section 674.406(4) is a notice requirement, and not a statute of…complaint. On appeal, Gerber argues that Section 674.406(4) is not a statute of limitations, which requires

Aprile v. SUNCOAST SCH. FED. CREDIT UN.

Court: Fla. Dist. Ct. App. | Date Filed: 1992-04-29T00:53:00-07:00

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…statute of limitations defense under subsection 674.406(4), is unavailable to Suncoast because the appellant…to his first point on appeal. Under subsection 674.406(4), a customer has one year within which to discover…Finally, the statute of limitations in subsection 674.406(4), is inapplicable in this case because the redemption…defense of statute of limitations under subsection 674.406(4), it is still entitled to a factual determination

Aprile v. Suncoast Schools Federal Credit Union

Court: Fla. Dist. Ct. App. | Date Filed: 1992-04-29T00:00:00-07:00

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…statute of limitations defense under subsection 674.-406(4), is unavailable to Suncoast because the appellant…to his first point on appeal. Under subsection 674.406(4), a customer has one year within which to discover…Finally, the statute of limitations in subsection 674.406(4), is inapplicable in this case because the redemption…defense of statute of limitations under subsection 674.406(4), it is still entitled to a factual determination

Podini v. Intercontinental Bank

Court: Fla. Dist. Ct. App. | Date Filed: 1990-02-27T00:00:00-08:00

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

Snippet: .2d 586 (Fla. 5th DCA 1981); Sections 674.406(1) & 674.-406(4), Florida Statutes (1983). No

Burdine-Coakley v. Capital Bank

Court: Fla. Dist. Ct. App. | Date Filed: 1989-03-27T23:53:00-08:00

Citation: 542 So. 2d 1019

Snippet: to comply with section 674.406, Florida Statutes (1983). Under section 674.406(3), however: (3) The preclusion…precluded from this action by Florida Statutes § 674.406 due to his failure to review the statements and… care on the part of Capital Bank. See section 674.406(3), Fla. Stat. (1983); Ossip Harris Ins., Inc. …attorney was or was not negligent under section 674.406(3) was properly for the fact finder,[3] I agree…those items. NOTES [1] The bank does not invoke § 674.406(4), Fla. Stat. (1983) as a defense. See Space Distribs

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

Court: Fla. Dist. Ct. App. | Date Filed: 1988-06-21T00:53:00-07:00

Citation: 528 So. 2d 42

Snippet: the statute of limitations contained in section 674.406(4), Florida Statutes (1985) (section 4-406(4) of…single-signature-when-two-are-required is an "unauthorized" one for 674.406(4) purposes is based largely on our interpretation…practical purposes, only forgeries qualify under 674.406(4). While there is a wide split of authority on…provided by the thus applicable terms of section 674.406(4), the judgment below is Affirmed. NOTES [1] …any possible view, including its own, of section 674.406(4). 87-2144 District Court of Appeal

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

Court: Fla. Dist. Ct. App. | Date Filed: 1987-11-24T00:00:00-08:00

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: Fla. Dist. Ct. App. | Date Filed: 1987-01-22T23:53:00-08:00

Citation: 502 So. 2d 1280

Snippet: affirmative defenses were predicated on section 674.406, Florida Statutes (1985). Subsection (1) of that…the Bank's affirmative defense under section 674.406, Florida Statutes (1985). The Bank honored the

Patterson Produce Co. v. First National Bank of Florida

Court: Fla. Dist. Ct. App. | Date Filed: 1985-10-04T00:00:00-07:00

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 …summary judgment, the bank argued that section 674.406(4) requires the bank customer to discover and report…correctly applied the one-year limitation of section 674.406(4) to the instant cause. Having examined the language…legislature intended the one-year limitation of section 674.406(4) to deal exclusively with the subject of forgeries… to rely on the one-year limitation of section 674.406(4) as a defense to the company’s claim. Accordingly

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

Court: Fla. Dist. Ct. App. | Date Filed: 1985-05-22T00:53:00-07:00

Citation: 469 So. 2d 201

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: Fla. Dist. Ct. App. | Date Filed: 1984-05-24T00:53:00-07:00

Citation: 450 So. 2d 337

Snippet: court's judgment, appellee relies on section 674.406, Florida Statutes (1981)[1]. Subsection (1) of …340 item(s) as provided under subsection 3 of § 674.406, then the customer is precluded from asserting …Contrary to the appellee's position, section 674.406 does not create an absolute liability on the part… statute almost identical to Florida Statute § 674.406, concluded that where a depositor failed to exercise…., Associate Judge, concur. NOTES [1] Section 674.406, in relevant part, says: Customer's duty to

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

Court: Fla. Dist. Ct. App. | Date Filed: 1983-03-21T23:53:00-08:00

Citation: 428 So. 2d 363

Snippet: report the forgeries to Barnett pursuant to Section 674.406, Florida Statutes (1981), and that Ossip's …assertion of liability by Ossip pursuant to Section 674.406, Florida Statutes (1981). Resolution of this dispute…provisions of subsections (1) through (3) of Section 674.406, Florida Statutes (1981), which state: (1) When…available to Ossip within the meaning of Section 674.406(2)(b). Consequently, the evidence supports the …Melbourne, N.A., 402 So.2d at 588, and under Section 674.406(2)(b), is therefore precluded from recovering against

First Nat. Bank v. Keshishian

Court: Fla. Dist. Ct. App. | Date Filed: 1983-02-22T23:53:00-08:00

Citation: 427 So. 2d 313

Snippet: Bank's defenses under sections 673.406 an 674.406 of the Florida U.C.C.[1] Keshishian, an Iranian…been complicated somewhat by sections 673.406 and 674.406, Florida Statutes (1977). These statutes shift …Appellee argues that both sections 673.406 and 674.406 require an affirmative showing by the Bank that… proceeds to trial, but with regard to section 674.406 it appears the customer must establish the bank…standards of the drawee's ... business. Section 674.406, Florida Statutes (1977), provides in part: (1)