N.Y. Uniform Commercial Code Law § 4-401 : Uniform Commercial Code — Bank Deposits And Collections — When Bank May Charge Customer's Account

  • Date:

Current through 2016 New York Laws, Chapters 1 to 237

(1) As against its customer, a bank may charge against his account any item which is otherwise properly payable from that account even though the charge creates an overdraft.
(2) A bank which in good faith makes payment to a holder may charge the indicated account of its customer according to
(a) the original tenor of his altered item; or
(b) the tenor of his completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper.
N.Y. U.c.c. Law § 4-401
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