American Airlines Employees Federal Credit Union v. Martin

We must decide whether former Section 4.406(d) of the Texas Business and Commerce Code, which requires a bank customer to discover and report an unauthorized signature on an item to the bank within one year, can be modified by agreement to sixty days. We hold that it can. We further conclude that, because the parties here entered into an enforceable agreement, the credit union customer failed to give the credit union the required notice for ten of the fourteen transactions at issue. We therefore reverse in part and affirm in part the court of appeals judgment.