Liability - Responsibility:
Uniform Commercial Code (UCC) Changes(Articles 3 and 4 rewritten in 1990)

• Changed long-held premise that banks were solely responsible for losses resulting from fraudulent checks.
• Liability for check fraud can now more easily be apportioned between banks and clients relative to a determination of fault
• Company and drawee bank must exercise "ordinary care" Ð adherence to reasonable commercial standards
• Negligence on the part of either party may make it liable for part or all of the losses resulting from check fraud

• Within one day for certain types of checks
• Two days for checks drawn on a local bank
• No longer than five days for non-local deposits