Forgery of the Drawer's Signature

The drawer’s signature was forged. There is, however, a provision in the monthly bank statement that if the drawer’s signature was forged, the drawer should report it within 10 days from receipt of the statement to the drawee. The drawer, however failed to do so. What will be its effect insofar as the drawer’s right is concerned?

The failure of the drawer to report the forgery within ten days from receipt of the monthly bank statement from the drawee bank does not preclude the drawer from questioning the mistake of the drawee bank despite the provision. (BPI v. CASA Montessor, G.R. No. 149454, May 28, 2004)