Okla. Stat. tit. 12A § 3-103
"Acceptance" | Section 3-409 |
"Accommodated party" | Section 3-419 |
"Accommodation party" | Section 3-419 |
"Account" | Section 4-104 |
"Alteration" | Section 3-407 |
"Anomalous indorsement" | Section 3-205 |
"Blank indorsement" | Section 3-205 |
"Cashier's check" | Section 3-104 |
"Certificate of deposit" | Section 3-104 |
"Certified check" | Section 3-409 |
"Check" | Section 3-104 |
"Consideration" | Section 3-303 |
"Draft" | Section 3-104 |
"Holder in due course" | Section 3-302 |
"Incomplete instrument" | Section 3-115 |
"Indorsement" | Section 3-204 |
"Indorser" | Section 3-204 |
"Instrument" | Section 3-104 |
"Issue" | Section 3-105 |
"Issuer" | Section 3-105 |
"Negotiable instrument" | Section 3-104 |
"Negotiation" | Section 3-201 |
"Note" | Section 3-104 |
"Payable at a definite time" | Section 3-108 |
"Payable on demand" | Section 3-108 |
"Payable to bearer" | Section 3-109 |
"Payable to order" | Section 3-109 |
"Payment" | Section 3-602 |
"Person entitled to enforce" | Section 3-301 |
"Presentment" | Section 3-501 |
"Reacquisition" | Section 3-207 |
"Special indorsement" | Section 3-205 |
"Teller's check" | Section 3-104 |
"Transfer of instrument" | Section 3-203 |
"Traveler's check" | Section 3-104 |
"Value" | Section 3-303 |
"Banking day" | Section 4-104 |
"Clearing house" | Section 4-104 |
"Collecting bank" | Section 4-105 |
"Depositary bank" | Section 4-105 |
"Documentary draft" | Section 4-104 |
"Intermediary bank" | Section 4-105 |
"Item" | Section 4-104 |
"Payor bank" | Section 4-105 |
"Suspends payments" | Section 4-104 |
Okla. Stat. tit. 12A, § 3-103
Oklahoma Code Comment
Sub section 3-103(a)(7) provides in part: "In the case of a bank that takes an instrument for processing for collection or payment by automated means, reasonable commercial standards do not require the bank to examine the instrument if the failure to examine does not violate the bank's prescribed procedures and the bank's procedures do not vary unreasonably general general usage not disapproved by this article or Article 4 of this title."
It is clear that the UCC approves bank procedures that do not involve the manual examination by a bank, particularly a payor bank, of all instruments. See Official Comment 4 to Section 4-406 . But what is general banking usage in Oklahoma and elsewhere on this matter?
The 1992 American Bankers Association Check Fraud Survey indicated that forged signatures were reported much more frequently than check kiting, counterfeit instruments or other types of fraud involving "on us" instruments for paying banks. Further, and not surprisingly, while employee training was the most used action to prevent check fraud losses, signature verification on all checks over a specified amount was employed by 51.6% of the banks responding, with a minimum figure of $1,000 and a median figure of $3,000 being used.
An Oklahoma Bankers Association survey printed in the December 23, 1991, edition of Legal Update indicated, based on the responses of 264 banks, that many small banks ($5 - $50 million in assets) in small areas (10,000 population and under) still examine basically all checks, but larger banks in populous areas do not. Moreover, beyond very small banks ($10 million and less in assets) in very small areas (5,000 population and under) most banks do not examine all checks. This fatter pattern is repeated when the division is made by the amount of the check; most banks examine checks over a certain dollar amount. The minimum amount tends to be lower in Oklahoma than nationally, with some Oklahoma banks examining even $100-$500 checks, although as banks get larger, the $1,000 figure is popular, as is a figure of $5,000. The minimum figure tends to be higher as population size increases. Random sampling of checks that are not routinely examined does not seem to be a widespread practice however