ยง 676. Unauthorized withdrawals from savings or time deposit accounts.
Any withdrawal of moneys from any savings account or time deposit
account maintained in any banking organization, branch of a foreign
banking corporation, national bank, federal savings and loan association
or federal credit union located in this state which is made by means of
an unauthorized signature is wholly inoperative as to the person whose
name is signed unless such person has authorized or ratified such
withdrawal or is precluded from denying such withdrawal because he has
received a portion of the funds withdrawn, provided that in such latter
event he shall be precluded from denying such withdrawal only with
respect to the funds so received; provided, however, that such a
signature shall operate as the signature of the unauthorized signer in
favor of any such banking organization, branch of a foreign banking
corporation, national bank, federal savings and loan association or
federal credit union which has, in good faith, honored such withdrawal.
No such banking organization, branch of a foreign banking corporation,
national bank, federal savings and loan association or federal credit
union shall interpose the defense, in an action for recovery by a
depositor of money paid upon an unauthorized signature, that it has
exercised due care and diligence in ascertaining the identity of the
person to whom it has paid such money. The term "unauthorized signature"
shall have the meaning ascribed to it by section 1--201 of the uniform
commercial code and the term "savings account" shall include shares
issued by a savings and loan association, state or federally chartered,
and by a credit union, state or federally chartered.
Any waiver of the provisions of this section or any contrary
agreement, by-law, rule or regulation of any banking organization,
branch of a foreign banking corporation, national bank, federal savings
and loan association or federal credit union located in this state shall
be void as against public policy and wholly unenforceable.