ÿWPC …# VUFa %§ 0@­4í w@ P 0„X 0DÜ 0J 0Tj 0^¾ 0h 0r„ 0|ö 0†r 0ø 1uˆ 0dý U6aB)—DCÀ AMU*P,zé¦ D3v~ÂvÓ@ 0@ BS AOpÆ¿ 0D… D/É Bø˜HP LaserJet 4SiHPPCL5MS,ü,,,,,ü0nLüÏ<¾½Q 9Z ‹.Courier New RegularX(ù$¡¡Ó  ÓÓ  ÓR¦"¡Ó 3|x± ›EœPDžŸ ¡¢D£Ó€¯(4(3DX$¤¤Ý ƒù!ÝÓ  ÓÓ  ÓÝ  Ýà  àòòÚ  Ú0Ú  Úóó(#Ã$òòÚ  Ú0Ú  Úóó2 ÿÿ0Indent1Ô2ÔÔ3  Ô2" ÿÿ0Indent2à0 àÔ2ÔÔ3  Ô2, ÿÿ0Indent3à0 àà0 àÔ2ÔÔ3  Ô26 ÿÿ0Indent4à0 àà0 àà0 àÔ2ÔÔ3  Ô2@ ÿÿ0Indent5à0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2J ÿÿ0Indent6à0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2T ÿÿ0Indent7à0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô2^ ÿÿ0Indent8à0 àà0 àà0 àà0 àà0 àà0 àà0 àÔ2ÔÔ3  Ô ÿÿ?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ÿÿ8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(Courier New% Line 7 d$$$$7Border 1dd€-%Cþÿ << Gÿÿ< Œ 9p`(Arial "Ý ƒ!ÝÑ  ÑÑ#€d#ÑÔ€#ÔÓ  ÓÓ  ÓÝ  ÝÔ€'ÔÔ€'ÔÓ  ÓÔ YYY ÔFILEDÔ€'XÔÌÌò òJune€6,€1997ÌÌCecil€Crowson,€Jr.ÌÔ€'ôÔAppellate€Court€Clerkó ó ßÝ ƒ!ÝÑ#€d#ÑÔ€#ÔÓ  ÓÓ  ÓÝ  ÝÝ ƒ $Ýà àòòÚ  ÚÚ  ÚóóÝ  ÝòòThis€provision€was€removed€by€the€1991€amendment.óóÌ....'ÿÿdxdPtPtHHÚ(ÿáÿâùFG(üHHÚ(d'hStyl{WP}01•ÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃÃà Ãà Ãà Ãà Ãà ÃÃÃÃÃÃÃÃÃÃÃÐ ÐÐHHÐÐ  ÐÐ2ÐÐÿÿ¸æ$ÿÐÐHHÐÐÐÐÐÐÐÐ  ÐÐ ÐÐ ÐÑÑÑGenevaÑÑ ÑÑ € ÑÑ<Px–ÈÑÒÒÒ443!#4ÒÒ$ *$ÒÒ$*$ÒÒ ÿKK ÒÒ  Geneva ÒÒ  Geneva ÒÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßÑGenevaÑÑ ÑÒ  h HD: Geneva ÒÒ  h HD: Geneva Ò("ÿÿ$££Ò  ÒÒ  Ò d€-‚ƒCþÿ<< CÿÿƒLevel 1Level 2Level 3Level 4Level 5($$””ò òÚ  Ú1Ú  Úó ó„„'÷ÿ dxdüÿP PdÝ ƒ!ÝÔ . ÔÔ€#ÔÓ  ÓÓ  ÓÝ  ÝÑ ¸ ÑÑ Ü ÑÑ\R AØ'\ÑÑ  ÑÑ  ÑÑ\R AØ'\ÑÑ7€y•XXdÖXXdÖ7ÑÙ€€ÙßR€&(%A1-j|` Å `€€@ÿRß›Þ ÞÌà@ àIN€THE€COURT€OF€APPEALSÌÌÌÌÌÌÌÌFIRST€TENNESSEE€BANK,€NATIONAL€€)à àHAMILTON€CHANCERYÌASSOCIATION,€€€€€€€€€€€€€€€€€€€€)à àC.A.€NO.€03A01„9701„CH„00014Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€Plaintiff„Appellee€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ìvs.€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)à àHON.€R.€VANN€OWENSÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)à àCHANCELLORÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)ÌJESSE€O.€œQUILLIAN›,€€€€€€€€€€€€€€)à àAFFIRMED€AND€REMANDEDÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€Defendant„Appellant€€€)ÌÌÌÌÌRICHARD€A.€FISHER,€Logan,€Thompson,€Miller,€œBilbo›,€Thompson€&ÏFisher,€P.C.,€Cleveland,€for€Appellant.ÌÌÌTHOMAS€L.€N.€KNIGHT,€œGrisham›,€Knight€&€Hooper,€Chattanooga,€forÏAppellee.ÌÌÌÌÌÌÓÓà@ àòòO€P€I€N€I€O€NóóÌÌà€ àMcMurrayœ,›€J.ÌÌà àThis€case€originated€as€an€action€to€collect€monies€due€underÏthe€terms€of€a€promissory€note€executed€by€the€defendant€to€theÏplaintiff€First€Tennessee€Bank,€National€Association.€€An€answerÏwas€filed€by€the€defendant€admitting€the€execution€of€the€note€andÏthat€there€was€an€outstanding€balance€thereon.€€He€also€filed€aÏcounterclaim€in€which€he€sought€a€œsetoff›€and€damages€for€forgedÏchecks€drawn€on€his€account€and€paid€by€the€bank.€€The€trial€courtÏon€motion€of€the€plaintiff,€entered€a€summary€judgment€against€theÏdefendant€on€the€original€complaint€and€dismissed€the€counter…claim.€€A€judgment€in€the€amount€of€€$34,399.24€was€enteredÏagainst€the€defendant.€€This€appeal€resulted.€€We€affirm€theÏjudgment€of€the€trial€court.ÌÌà àThe€defendant€challenges€the€propriety€of€the€trial€court'sÏaction€in€granting€the€plaintiff's€motion€for€summary€judgment.€ÏThe€primary€thrust€of€the€argument€put€forth€by€the€defendant€isÍthat€the€bank€was€negligent€by€failing€to€exercise€ordinary€careÏand€to€act€with€commercial€reasonableness€in€dealing€with€theÏdefendant's€account.ÌÌà àUnder€the€undisputed€facts€in€the€case,€the€defendant'sÏbookkeeper€had,€for€a€period€of€œyears›€œ(1992„1995),›€forged€theÏdefendant's€name€on€a€large€number€of€checks,€cashed€the€checksÏand€used€them€for€her€benefit.€€She€is€now€under€indictment€forÏembezzlement.€€The€defendant€admits€that€it€was€the€practice€ofÏhis€office€for€him€to€sign€checks€payable€to€cash€and€have€theÏbookkeeper€take€them€to€the€bank,€cash€them€for€him€and€give€himÏthe€cash.€€The€bookkeeper€apparently€forged€several€œchecks›€madeÏpayable€to€cash,€cashed€the€checks€and€converted€the€funds€to€herÏown€use.€€She€further€wrote€checks€to€others€in€payment€of€herÏpersonal€obligations.ÌÌà àThe€record€further€reflects€that€the€bank€had€sent€statementsÏof€the€defendant's€account,€including€canceled€checks,€to€him€atÏthe€proper€address€every€month.€€The€defendant€admits€receivingÏthe€statements€and€that€he€did€not€review€the€canceled€checks€norÍreconcile€his€account€during€the€period€within€which€the€embezzle…ment€took€place.€€Rather,€he€delegated€that€duty€to€his€bookkeeperÏwho€is€charged€with€embezzlement.€€The€defendant€discovered€theÏforgeries€sometime€in€1995€and€reported€them€to€the€bank€on€AprilÏ6,€1995.ÌÌà@ àò òSTANDARD€OF€REVIEWó óÌÌà àOur€standard€of€review€in€considering€the€propriety€of€summa…ry€judgment€is€as€follows:ÌÌÓÓà8 àà àThe€standards€governing€an€appellate€court's€reviewÏof€a€trial€court's€action€on€a€motion€for€summary€à àjudg…ment€are€well€settled.€Since€our€inquiry€involves€purelyÏa€question€of€law,€no€presumption€of€correctness€atta…ches€to€the€trial€court's€judgment,€and€our€task€isÏconfined€to€reviewing€the€record€to€determine€whetherÏthe€requirements€of€Tenn.€R.€œCiv›.€P.€56€have€been€met.ÏòòœCowden›€v.€œSovran›€Bank/Central€Southóó,€816€S.W.2d€741,€744Ï(Tenn.€1991).€Tenn.€R.€œCiv›.€P.€56.03€provides€thatÏsummary€judgment€is€only€appropriate€where:€(1)€there€isÏno€genuine€issue€with€regard€to€the€material€factsÏrelevant€to€the€claim€or€defense€contained€in€the€mo…tion,€òòByrd€v.€Hallóó,€847€S.W.2d€208,€210€(Tenn.€1993);Ïand€(2)€the€moving€party€is€entitled€to€a€judgment€asÏmatter€of€law€on€the€undisputed€facts.€òòAnderson€v.ÏStandard€Register€œCoóó.,›€559€(Tenn.€1993).€The€movingÏparty€has€the€burden€of€proving€that€its€motion€satis…fies€these€requirements.€òòœDownen›€v.€Allstate€œIns›.€œCoóó.,›Ï524€(Tenn.€1991).ÌÌà8 àà àThe€standards€governing€the€assessment€of€evidenceÏin€the€summary€judgment€context€are€also€well€estab…lished.€Courts€must€view€the€evidence€in€the€light€mostÏfavorable€to€the€nonmoving€party€and€must€also€draw€allÏreasonable€inferences€in€the€nonmoving€party's€favor.ÏòòByrdóó,€847€S.W.2d€at€210„11.€Courts€should€grant€a€summa…ry€judgment€only€when€both€the€facts€and€the€conclusionsÏto€be€drawn€from€the€facts€permit€a€reasonable€person€toÏÔ&  Ôreach€only€one€conclusion.€Id.ÌÌÌòòœCarvell›€v.€Bottomsóó,€900€S.W.2d€23€(Tenn.€1995).Ô'  ÔÌÌÌÌÓÓà àThe€chancellor€issued€a€scholarly€memorandum€opinion€in€whichÏhe€found€that€there€were€some€disputed€issues€of€fact€but€thatÏthere€was€no€genuine€issue€of€a€material€fact€which€required€thatÏthe€case€be€tried.€€The€chancellor€noted€that€"[œo]ne›€of€the€funda…mental€principles€of€commercial€law€is€that€'no€person€is€liableÏon€an€instrument€unless€his€signature€appears€thereon'"€citingÏòòœKaley›€v.€Union€Planter's€œNat'l›€Bankóó,€775€S.W.2d€607,€609.€HeÏfurther€correctly€noted€that€there€are€exceptions€to€this€generalÏrule.€€The€exception€upon€which€the€court€bases€œits›€decision€isÏthe€provisions€of€T.C.A.€ðð€47„4„406,€which€at€all€times€materialÏœprovided›€as€follows:ÌÌÓÓà8 àà àò ò47„4„406,€Customer's€duty€to€discover€andÏreport€unauthorized€signature€or€authorization.ð"ðÏó ó(1)€When€a€bank€sends€to€its€customers€a€statement€ofÏaccount€accompanied€by€items€paid€in€good€faith€inÏsupport€of€the€debit€entries€or€holds€the€statement€andÏitems€pursuant€to€a€request€or€instructions€of€itsÏcustomer€or€otherwise€in€a€reasonable€manner€makes€theÏstatement€and€items€available€to€the€customer,€theÏòòò òcustomer€must€œexercise›€reasonable€care€andÏpromptness€to€examine€the€statement€and€items€toÏdiscover€his€unauthorized€signature€or€any€alter…ation€on€an€item€and€must€notify€the€bank€prompt…ly€after€discovery€thereofó óóó.€(Emphasis€added).ÌÌà8 àà à(2)€If€the€bank€establishes€that€the€customerÏfailed€with€respect€to€an€item€to€comply€with€his€dutiesÏimposed€on€the€customer€by€subsection€(1)€the€customerÏis€precluded€from€asserting€against€the€bank:ÌÌà8 àà àà0 àà à(a)à àHis€unauthorized€signature€or€any€alterationÏon€the€item€if€the€bank€also€establishes€thatÏit€suffered€a€loss€by€reason€of€such€failure;ÏandÌÌà8 àà0 àà0 àà à(b)à àAn€unauthorized€signature€or€alteration€by€theÏsame€wrongdoer€on€any€other€item€paid€in€goodÏfaith€by€the€bank€after€the€first€item€andÏstatement€was€available€to€the€customer€for€aÏreasonable€period€not€exceeding€fourteen€(14)Ïcalendar€days€and€before€the€bank€receivesÏnotification€from€the€customer€of€any€suchÏunauthorized€signature€or€alteration.ÌÌà8 àà à(3)€A€customer€who€does€not€within€one€(1)€yearÏfrom€the€time€the€statement€and€items€are€made€availableÏto€the€customer€(subsection€(1))€discover€and€report€hisÏunauthorized€signature€or€any€alteration€on€the€face€orÏback€of€the€item€or€does€not€within€three€(3)€years€fromÍthat€time€discover€and€report€any€unauthorized€endorse…ment€is€precluded€from€asserting€against€the€bank€suchÏunauthorized€signature€or€endorsement€or€such€alter…ation.ÌÌà8 àà à(4)€If€under€this€section€a€payor€bank€has€a€validÏdefense€against€a€claim€of€a€customer€upon€or€resultingÏfrom€payment€of€an€item€and€waives€or€fails€upon€requestÏto€assert€the€defense€the€bank€may€not€assert€againstÏany€collecting€bank€or€other€prior€party€presenting€orÏtransferring€the€item€a€claim€based€upon€the€unautho…rized€signature€or€alteration€giving€rise€to€the€custom…er's€claim.€[Acts€1963,€ch.€81,€ðð€1€(4„406)l€1991,€ch.Ï52,€ðð€œ3.]›ÌÌÓÓÌà àThe€defendant€insists€that€it€is€necessary€to€look€to€theÏlegislative€history€of€T.C.A.€ðð€47„4„406€for€a€proper€interpreta…tion€of€the€enactment.€€We€are€of€the€opinion€that€the€statute€isÏunambiguous€and€that€the€legislative€history€is€irrelevant.ÌÌÓÓà8 à€€€€€€€The€most€basic€rule€of€statutory€construction€isÏto€ascertain€and€give€effect€to€the€intention€and€pur…pose€of€the€legislature.€œòòWorrall›€v.€Kroger€Coóó.,€545ÏS.W.2d€736€(Tenn.€1977).€Legislative€intent€or€purposeÏis€to€be€ascertained€primarily€from€the€natural€andÏordinary€meaning€of€the€language€used,€without€forced€orÏsubtle€construction€that€would€limit€or€extend€theÏmeaning€of€the€language.€òòNational€Gas€Distributors,€Inc.Ïv.€Stateóó,€804€S.W.2d€66€(Tenn.€1991).€Where€the€languageÏcontained€within€the€four€corners€of€a€statute€is€plain,Ïclear,€and€unambiguous€and€the€enactment€is€withinÏlegislative€competency,€"the€duty€of€the€courts€isÏsimple€and€obvious,€namely,€to€say€òòsic€lex€scriptaóó,€andÍobey€it."€òòMiller€v.€œChildress›óó,€21€Tenn.€(2€Hum.)€319,Ï321„22€(1841).ÌÌÓÓÌà àThe€defendant€also€insists€that€the€bank€is€subject€to€com…parative€negligence€as€adopted€in€òòMcIntyre€v.€œBallentine›óó,€833ÏS.W.2d€52€(Tenn.€œ1992)›€€We€find€no€authority€for€this€propositionÏas€the€statute€existed€at€times€material€to€this€dispute.€€TheÏstatute€was€amended€in€1995.€€The€1995€amendment€added€severalÏprovisions€to€T.C.A.€ðð€47„4„406€including€a€provision€that€"[œi]f›Ïthe€customer€proves€that€the€bank€did€not€pay€the€item€in€goodÏfaith,€the€preclusion€under€subsection€(d)€does€not€apply."€€TheÏcomments€to€the€official€text€after€the€1995€amendment€seem€toÏindicate€that€comparative€negligence€may€now€be€a€considerationÏunder€this€section€of€the€code.€€The€comments,€in€pertinent€partÏare€as€follows:€ÌÌÓÓà8 àà à4.€Subsection€(e)€replaces€former€subsection€(3)Ïand€poses€a€modified€comparative€negligence€test€forÏdetermining€œliability.€›€See€the€discussion€on€this€pointÏin€the€Comments€to€Sections€œ3„404,›€3„405,€œand›€œ3„406.›€TheÏterm€"good€faith"€is€defined€in€Section€3„103(a)(4)€asÏincluding€"observance€of€reasonable€commercial€standardsÏof€fair€dealing."€The€connotation€of€this€standard€isÏfairness€and€not€absence€of€negligence.ÌÌÓÓÌà àSince,€however,€this€amendment€was€not€enacted€until€afterÏthe€dates€material€to€this€case,€the€amendment€has€no€consequenceÏas€to€the€outcome€œhere.›€€We€believe€that€the€same€reasoning€asÏapplied€in€òòVending€Chattanooga,€Inc.,€v.€American€œNat'l›€Bank€&ÏTrust€Coóó.,€730€œS.W.2d€624›€(Tenn.€1987)€is€applicable€here.€€InÏòòVendingóó,€the€court€noted:ÌÌÓÓà8 àà àIn€a€forgery€case,€we€start€with€the€basic€premiseÏand€rule€of€law€that€between€the€customer€and€the€bank,Ïthe€bank€must€bear€the€loss€where€monies€have€been€paidÏout€due€to€a€third€party€forging€the€customer's€signa…ture€on€a€check.€Tenn.€Code€Ann€ðð€47„3„401(1),€providesÏ"No€person€is€liable€on€an€instrument€unless€his€signa…ture€appears€thereon."€The€signature€of€the€drawer€isÏone€of€the€essential€elements€to€the€validity€of€a€checkÏand€the€general€rule€is€the€bank€must€know€the€genuine…ness€of€the€depositor's€signature.€òòAmerican€NationalÏBank€v.€Milesóó,€18€Tenn.€App.€440,€79€S.W.2d€47€(1935).ÌÌà8 àà àAn€exception€to€this€general€rule€is€contained€inÏT.C.A.€ðð€47„4„406,€which,€as€pertinent€here€œprovides:›Ì€Ìà8 àà àCustomer's€duty€to€discover€and€report€unauthorizedÏsignature€or€alteration.€„„(1)€When€a€bank€sends€to€itsÏcustomer€a€statement€of€account€accompanied€by€itemsÏpaid€in€good€faith€in€support€of€the€debit€entries€orÏholds€the€statement€and€items€pursuant€to€a€request€orÏinstructions€of€its€customer€or€otherwise€in€a€reason…able€manner€makes€the€statement€and€items€available€toÏthe€customer,€the€customer€must€exercise€reasonable€careÏand€promptness€to€examine€the€statement€and€items€toÍdiscover€his€unauthorized€signature€or€any€alteration€onÏan€item€and€must€notify€the€bank€promptly€after€discov…ery€thereof.Ì€Ìà8 à(2)€If€the€bank€establishes€that€the€customer€failedÏwith€respect€to€an€item€to€comply€with€the€duties€im…posed€on€the€customer€by€subsection€(1)€the€customer€isÏprecluded€from€asserting€against€the€bank:Ì€Ìà8 àà0 àà à(a)€his€unauthorized€signature€or€any€alter…ation€on€the€item€if€the€bank€also€establishes€thatÏit€suffered€a€loss€by€reason€of€such€failure;€and€ÌÌà8 àà0 àà à(b)€an€unauthorized€signature€or€alteration€byÏthe€same€wrongdoer€on€any€other€item€paid€in€goodÏfaith€by€the€bank€after€the€first€item€and€state…ment€was€available€to€the€customer€for€a€reasonableÏperiod€not€exceeding€fourteen€(14)€calendar€daysÏand€before€the€bank€receives€notification€from€theÏcustomer€of€any€such€unauthorized€signature€orÏalteration.Ì€Ìà8 àà0 àà à(3)€The€preclusion€under€subsection€(2)€doesÏnot€apply€if€the€customer€establishes€lack€ofÏordinary€care€on€the€part€of€the€bank€in€paying€theÏitem(s).× ƒ) ××  ×Ì€Ìà8 àà àThe€appellant€bank€contends€that€the€trial€courtÏand€the€Court€of€Appeals€were€in€error€in€the€applica…tion€of€the€facts€of€this€case€to€the€law€as€containedÏin€T.C.A.€ðð€47„4„406,€in€that:€(1)€plaintiff,€VendingÏChattanooga,€Inc.,€did€not€exercise€reasonable€care€toÏexamine€its€bank€statement€and€the€enclosed€checks€inÏorder€to€discover€the€unauthorized€signatures€of€itsÏpresident€on€the€forged€checks,€and€failed€to€report€theÏforgeries€to€the€bank€as€required€by€law;€and€(2)€theÏbank€exercised€ordinary€care€in€honoring€the€checksÏbearing€the€forged€signatures.Ì€Ìà8 àà àAll€forty€checks€involved€"an€unauthorized€signa…ture€or€alteration€of€the€same€wrongdoer,"€and€thus€theÏspecial€provision€of€subsection€(2)(b)€of€T.C.A.€ððÏ47„4„406€comes€into€play.€Thus,€if€the€customer€is€foundÏnot€to€have€exercised€reasonable€care€in€examining€theÏbank€statements,€the€bank€would€not€be€liable€for€forg…eries€paid€after€the€first€forged€check€and€statementÏwas€available€to€the€customer€for€a€reasonable€periodÏnot€exceeding€fourteen€calendar€days€before€the€bankÏreceives€notification€from€the€customer€of€the€forgery.ÌÌÓÓÌà àThe€defendant€readily€admits€that€he€did€not€examine€theÏstatements€of€account€and€checks€that€were€sent€to€him€by€theÏbank.€€His€deposition€testimony€discloses€the€following:ÌÌà@ à*€€€€€*€€€€€*€€€€€*€€€€€*ÌÒ  ÒÒ ° ÒÒ  ÒÒ  ÒÓÓà0 àà àQ.à àAll€right.€€But€with€respect€to,€say,€this€periodÏof€about€a€year€and€a€half,€two€years€that€she€[theÏbookkeeper]€worked€for€you,€how€many€times€do€youÏthink€you€would€have€looked€at€a€bank€statementÏfrom€First€Tennessee€Bank€on€this€account?ÌÌà0 àà àA.à àMaybe€four€or€five€times.ÌÌà0 àà àQ.à àAll€right.€€Was€there€anything€that€you€noticed€onÏany€of€those€four€or€five€occasions€that€was€unusu…al?ÌÌà0 àà àA.à àNothing€unusual€at€the€time.ÌÌà0 àà àQ.à àAll€right,€sir.€€But€did€you€not€attempt€to€matchÏthe€checks€that€were€in€those€statements€with€theÏstatements€themselves,€did€you?ÌÌà0 àà àA.à àNo,€sir.€I€just€accepted€it€as€a€true€copy€andÏwhatever.ÌÌà0 àà àQ.à àBut€you€would€be€aware€of€the€fact€that€the€bestÏway€or€easiest€way€to€detect€a€forgery€would€be€toÏcompare€the€check€itself€with€the€entry€on€theÏstatement,€correct,€sir?ÌÌà0 àà àA.à àThat's€correct.ÌÌà0 àà àQ.à àAll€right.€€In€other€words,€you€looked€at€numerousÏchecks€here€a€few€minutes€ago€and€could€tell€usÏeasily€which€were€not€forgeries,€right?à0 àà àÌÌà0 àà àA.à àWell,€I€looked€at€these€at€length€an€hour€or€twoÏago.€€I€didn't€study€the€ones€that€came€through€asÏclosely€as€I€did€these€today.ÌÌà0 àà àQ.€€My€point€is,€Dr€Quillian,€had€you€looked€at€theÏchecks€when€they€came€in€each€month,€each€and€everyÏmonth,€month€in€and€month€out,€you€could€haveÏdetected€which€were€your€signatures€and€which€wereÏforgeries?ÌÌà0 àà àA.à àIf€I'd€been€alert,€alert€enough€to,€I€would€have,Ïbut€I€had€no€idea€that€anything€was€wrong.ÌÌà0 àà àQ.à àOkay.€€But€I'm€not€asking€you,€and€I€would€ask€orÏrequest€that€you€answer€my€question.€€Had€youÏlooked€at€those€checks,€you€could€have€detectedÏwhich€ones€were€forgeries,€could€you€not?ÌÌà0 àà àA.à àI€could.€€I€have€done€so€today.ÌÌà@ à*€€€€€*€€€€€*€€€€€*€€€€€*ÌÌÒ ° ÒÒ  ÒÒ ° ÒÒ ° ÒÓÓÌà àœSimply€stated,›€the€defendant€failed€to€exercise€reasonableÏcare€and€diligence€in€discovering€the€forgeries€and€did€not€timelyÏnotify€the€bank.€€"...€a€depositor€must€be€held€chargeable€withÏknowledge€of€all€the€facts€that€a€reasonable€and€prudent€examina…tion€of€the€returned€bank€statements€would€have€disclosed€had€itÏbeen€made€by€a€person€on€the€depositor's€behalf€who€had€not€par…ticipated€in€the€forgeries."€€òòVending€Chattanoogaóó,€supra.ÌÌà àIn€conclusion,€we€concur€with€the€findings€of€the€trial€courtÏthat€there€are€no€material€issues€in€this€case€which€require€aÏtrial.€€We€affirm€the€judgment€of€the€trial€court€in€all€respects.ÌÌà àCosts€of€this€case€are€assessed€to€the€defendant.€€This€caseÏis€remanded€to€the€trial€œcourt.ÌÌÌÓÓà€ à______________________________Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€Don€T.€McMurray,€JudgeÌÌÌÌCONCUR:ÌÌÌ___________________________________ÌHerschel€P.€Franks,€Judgeà àÌÌÌ___________________________________ÌCharles€D.€Susano,€Jr.,€JudgeÌÌÇÑ  ÑÑ7€;ZXXd×XXd×7Ñà@ àIN€THE€COURT€OF€APPEALSÌÌÌÌÌÌÌÌFIRST€TENNESSEE€BANK,€NATIONAL€€)à àHAMILTON€CHANCERYÌASSOCIATION,€€€€€€€€€€€€€€€€€€€€)à àC.A.€NO.€03A01„9701„CH„00014Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€Plaintiff„Appellee€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ìvs.€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)à àHON.€R.€VANN€OWENSÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)à àCHANCELLORÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)ÌJESSE€O.€QUILLIAN,€€€€€€€€€€€€€€)à àAFFIRMED€AND€REMANDEDÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€)Ì€€€€€€€€€€Defendant„Appellant€€€)ÌÌÌÌà@ àò òòòJUDGMENTóóó óÌÌÌÓÓà àThis€appeal€came€on€to€be€heard€upon€the€record€from€theÏChancery€Court€of€Hamilton€County,€briefs€and€argument€of€counsel.€ÏUpon€consideration€thereof,€this€Court€is€of€opinion€that€thereÏwas€no€reversible€error€in€the€trial€court.Ìà àWe€affirm€the€judgment€of€the€trial€court€in€all€respects.€ÏCosts€of€are€assessed€to€the€defendant.€€This€case€is€remanded€toÏthe€trial€court.ÌÌÌÌ€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€€PER€CURIAM›