CT HB05559

Allows banks and customers to agree in writing to reduce the standard one-year timeframe for discovering and reporting unauthorized signatures or alterations on bank items.

Requires that any agreed-upon shortened timeframe cannot be used to disclaim the bank's obligation to act in good faith and exercise ordinary care under general banking law.

Preserves customers' right to pursue full damages against banks for lack of good faith or failure to exercise ordinary care, regardless of any shortened reporting agreement.

Effective October 1, 2016, amending section 42a-4-406(f) of the general statutes.