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New York banks can't give a customer less than a year to object to an allegedly unauthorized funds transfer, a federal judge has ruled. Although nothing in Uniform Commercial Code Article 4A "explicitly prohibits" the one-year provision from being modified by contract, doing so would "effectively eviscerate" a bank's duty under the code to refund a transfer if the bank violated an agreed-upon security procedure, the judge said.
March 25, 2003 at 12:00 AM
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The original version of this story was published on Law.Com
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