N.Y. Uniform Commercial Code Law Section 4-401
When Bank May Charge Customer’s Account

Section 4--401. When Bank May Charge Customer’s Account.

(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.

Source: Section 4-401 — When Bank May Charge Customer's Account, https://www.­nysenate.­gov/legislation/laws/UCC/4-401 (updated Sep. 22, 2014; accessed Feb. 15, 2025).

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Accessed:
Feb. 15, 2025

Last modified:
Sep. 22, 2014

§ 4-401’s source at nysenate​.gov

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