Thank you for your question. I look forward to working with you to provide you the information you are seeking for educational purposes.
This is not an actual banking statute, it is a determination that needs to be made against the bank regarding whether or not they used proper duty of care to examine the signatures on the checks when presented. T
he question is whether a bank which has failed to verify any of the drawer's signatures on the forged checks because they fell below the bank's threshold can nonetheless be considered to have exercised "ordinary care" in paying the items. The banks defend themselves against these allegations claiming that a account holder should be reviewing their monthly statements to verify payments taken from their account and had they done so the bank could have stopped payment in a reasonable time.
Thus, the first step you need to take is you need to find out what the particular bank's threshold is for verifying signatures is and if they complied with that threshold and if they did not then you could consider getting an attorney for the trust to pursue the bank for breach of their duty of care to the account holder. The bank is only liable to exercise an ordinary duty of care by following their rules and guidelines in verifying signatures.
I truly aim to please you as a customer, but please keep in mind that I do not know what you already know or don't know, or with what you need help, unless you tell me. Please consider that I am answering the question or question that is posed in your posting based upon my reading of your post and sometimes misunderstandings can occur. If I did not answer the question you thought you were asking, please respond with the specific question you wanted answered.
Kindly remember the ONLY WAY experts receive any credit at all for spending time with customers is if you click on OK, GOOD or EXCELLENT SERVICE even though you have made a deposit or are a subscription customer. YOU MUST COMPLETE THE RATING FOR THE EXPERT TO RECEIVE ANY CREDIT, if not the site keeps your money on deposit.
Also remember, sometimes the law does not support what we want it to support, but that is not the fault of the person answering the question, so please be courteous.
This is NOT the practice of law nor is it legal advice to you, it is merely educational information for you to use to seek out a licensed attorney in your state to get actual legal advice from them. Please use sites such as http://www.martindale.com or http://www.lexmundi.com or http://www.hg.org to find a local attorney to get actual legal advice in all matters.