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Massachusetts Court Strictly Enforces One-Year Notice Deadline For Check Fraud

LexisNexis (May 3, 2018, 10:41 AM EDT) -- In the typical check fraud case, the first line of defense for the bank is the customer's duty to notify it of any fraud within the one-year deadline established by UCC 4-406(f).  Failure to give timely notice of unauthorized debits to the account precludes the customer from shifting the loss to the bank, even though the bank might be guilty of negligence in handling the deposit account.  The one-year discovery deadline displaces any negligence on the part of the bank, including failure to act on red...
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