California Legislature—2015–16 Regular Session

Assembly Bill No. 257

Introduced by Assembly Member Achadjian

February 9, 2015

An act to amend Section 1409 of the Financial Code, relating to banking.

LEGISLATIVE COUNSEL’S DIGEST

AB 257, as introduced, Achadjian. Banking.

Under existing law, the Banking Law, when a statement of account has been rendered by a bank to a depositor accompanied by vouchers, if any, which are the basis for debit entries in that account, that account is required, after the period of four years from the date of its rendition, in the event no objection thereto has been theretofore made by the depositor, to be deemed finally adjusted and settled and its correctness conclusively presumed, and that depositor is required thereafter to be barred from questioning the correctness of that account for any cause.

This bill would make nonsubstantive changes to that provision.

Vote: majority. Appropriation: no. Fiscal committee: no. State-mandated local program: no.

The people of the State of California do enact as follows:

SECTION 1.  

Section 1409 of the Financial Code is amended
to read:

1409.  

When a statement of account has been rendered by a
bank to a depositor accompanied by vouchers, if any, which are
the basis for debit entries in begin delete such end delete begin insert that end insert account, begin delete such end delete begin insert that end insert account
shall, after the period of four years from the date of its rendition,
in the event no objection thereto has been theretofore made by the
depositor, be deemed finally adjusted and settled and its correctness
conclusively presumed and begin delete such end delete begin insert that end insert depositor shall thereafter be
barred from questioning the correctness of begin delete such end delete begin insert that end insert account for
any cause.

A statement of account within the meaning of this section shall
be deemed to have been rendered on a savings or time account
when the bank, by making a notation in the depositor’s bank book
or in some other manner reasonably calculated to give notice
thereof to the depositor indicates that a certain sum is the correct
balance of the account.

Nothing herein shall be construed to relieve the depositor from
the duty now imposed by law of exercising due diligence in the
examination of begin delete such end delete begin insert that end insert account and vouchers, if any, when
rendered by the bank and of immediate notification to the bank
upon discovery of any error therein, nor from the legal
consequences of neglect of begin delete such end delete begin insert that end insert duty; nor to prevent the
application of subsection (3) of Section 340 of the Code of Civil
Procedure to cases governed thereby.