ORS 74.4060
Statements to customer

  • requirements
  • retaining copies of items
  • duty of customer to determine unauthorized payment
  • allocation of loss

(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 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.

(3)

If a bank sends or makes available a statement of account or items pursuant to subsection (1) 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 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) of this section 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) 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 (3) 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 (4) of this section 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 as provided in subsection (1) of this section discover and report the customer’s unauthorized signature on or any alteration on the face or back of the item or does not within 18 months from that time discover and report any unauthorized indorsement on the item is precluded from asserting against the bank the unauthorized signature or indorsement or alteration. If there is a preclusion under this subsection, the payor bank may not recover for breach of warranty under ORS 74.2080 (Presentment warranties) with respect to the unauthorized signature or indorsement or alteration to which the preclusion applies. [1961 c.726 §74.4060 (Statements to customer); 1989 c.604 §1; 1993 c.545 §108]

Source: Section 74.4060 — Statements to customer; requirements; retaining copies of items; duty of customer to determine unauthorized payment; allocation of loss, https://www.­oregonlegislature.­gov/bills_laws/ors/ors074.­html.

Notes of Decisions

Where there is evidence of negligence on the part of both parties, the case is for the jury. Transamerica Ins. Co. v. U.S. Nat. Bank, 276 Or 945, 558 P2d 328 (1976)

Bank’s practice of automatically paying all checks under $5,000 without any procedure to detect unauthorized signatures cannot be considered due care or reasonable commercial banking standards under this statute and [former] ORS 73.4060. Medford Irrigation Dist. v. Western Bank, 66 Or App 589, 676 P2d 329 (1984)

74.1010
Short title
74.1020
Applicability
74.1030
Variation by agreement
74.1040
Definitions and index of definitions
74.1050
“Bank”
74.1060
Payable through or payable at bank
74.1070
Separate office of bank for computing time for actions, notices and orders
74.1080
Time of receipt of items
74.1090
Waiver of time limits
74.1110
Statute of limitations
74.1120
Electronic presentment
74.2010
Status of collecting bank as agent and provisional status of credits
74.2020
Responsibility for collection
74.2030
Effect of instructions
74.2040
Methods of sending and presenting
74.2050
Depositary bank as holder of unindorsed item
74.2060
Transfer between banks
74.2070
Warranties of customer and collecting bank on transfer of item
74.2080
Presentment warranties
74.2090
Encoding and retention warranties
74.2100
Security interest of collecting bank in items
74.2110
Bank as holder in due course
74.2120
Presentment by notice of item not payable by, through or at bank
74.2130
Medium and time of settlement by bank
74.2140
Right of charge-back or refund
74.2150
Final payment of item by payor bank
74.2160
Insolvency and preference
74.3010
Deferred posting
74.3020
Payor bank’s responsibility for late return of item
74.3030
When items subject to notice, stop payment order, legal process or setoff
74.4010
When bank may charge customer’s account
74.4020
Bank’s liability to customer for wrongful dishonor
74.4030
Customer’s right to stop payment
74.4040
Bank not obligated to pay check more than six months old
74.4050
Death or incompetence of customer
74.4060
Statements to customer
74.4070
Payor bank’s right to subrogation on improper payment
74.5010
Handling of documentary drafts
74.5020
Presentment of “on arrival” drafts
74.5030
Responsibility of presenting bank for documents and goods
74.5040
Privilege of presenting bank to deal with goods
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