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1164 If a bank customer fails to discover within a reasonable time that the bank has paid forged checks drawn on the customer's account, the bank is not liable unless it failed to use reasonable care; the bank can show that it did use reasonable care by offering evidence that it adhered to its own system for examining checks and that its system is consistent with banking practices in the area.
STORY ROAD v WELLS FARGO (Forged Checks) 42 CA4 1733 [See: CA-UCC 4406; Roy v Wells Fargo 39 CA4 1051, T/AT 12/95]
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