New Jersey § 12a:4-406

§ 12a:4-406.

a. 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. b. 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 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. c. If a bank sends or makes available a statement of account or items pursuant to

subsection a. 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 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. d. If the bank proves that the customer failed, with respect to an item, to comply

with the duties imposed on the customer by subsection c. of this section, the customer

is precluded from asserting against the bank: (1) 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 (2) 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. e. If subsection d. 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 c. 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 d. of this section does not apply. f. Without regard to care or lack of care of either the customer or the bank, a customer

who does not within one year after the statement or items are made available to the

customer (subsection a. of this section) discover and report the customer's unauthorized

signature on or any alteration on the item 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 12A:4-208 with respect to the unauthorized signature or alteration

to which the preclusion applies.