Jefferson Parish School Board v. First Commerce Corp.
Court of Appeal for the Fourth Circuit of Louisiana
669 So.2d 1298 (1996)
The School Board (plaintiff) had a checking account with the Bank (defendant) and signed a facsimile-signature resolution authorizing the Bank to honor checks bearing facsimile signatures resembling the specimens on file, regardless of who actually affixed them, with the School Board assuming all risk of unauthorized use. Unauthorized checks were later presented and paid by the Bank; the School Board discovered them on its monthly statement and demanded reimbursement, which the Bank refused based on the resolution. The trial court granted the Bank summary judgment, and the School Board appealed.
Whether, under the Uniform Commercial Code, a bank and its customer may agree to limit the bank's responsibility for unauthorized checks to insuring that the signatures resemble specimens on file.