BILL NUMBER: AB 257	INTRODUCED
	BILL TEXT


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  such   that  account,
 such   that  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  such   that  depositor shall
thereafter be barred from questioning the correctness of 
such   that  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  such   that  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  such 
 that  duty; nor to prevent the application of subsection
(3) of Section 340 of the Code of Civil Procedure to cases governed
thereby.