There is a newer version of the Kentucky Revised Statutes
2009 Kentucky Revised Statutes
Article 4 Bank Deposits and Collections
355.4.401 When bank may charge customer's account.
Download pdfproperly payable if it is authorized by the customer and is in accordance with any
agreement between the customer and bank. (2) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefited from the proceeds of the item. (3) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even though payment was made before the date
of the check, unless the customer has given notice to the bank of the postdating
describing the check with reasonable certainty. The notice is effective for the period
stated in KRS 355.4-403(2) for stop-payment orders, and must be received at such
time and in such manner as to afford the bank a reasonable opportunity to act on it
before the bank takes any action with respect to the check described in KRS 355.4-
303. If a bank charges against the account of a customer a check before the date
stated in the notice of postdating, the bank is liable for damages for the loss
resulting from its act. The loss may include damages for dishonor of subsequent
items under KRS 355.4-402. (4) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:
(a) The original terms of the altered item; or
(b) The terms of the completed item, even though the bank knows the item has been completed unless the bank has notice that the completion was improper. Effective: January 1, 1997
History: Amended 1996 Ky. Acts ch. 130, sec. 102, effective January 1, 1997. -- Created 1958 Ky. Acts ch. 77, sec. 4-401, effective July 1, 1960.
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