There is a newer version of the Connecticut General Statutes
2005 Connecticut Code - Sec. 42a-4-402. Bank\'s liability to customer for wrongful dishonor. Time of determining insufficiency of account.
Sec. 42a-4-402. Bank's liability to customer for wrongful dishonor. Time of
determining insufficiency of account. (a) Except as otherwise provided in this article,
a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable,
but a bank may dishonor an item that would create an overdraft unless it has agreed to
pay the overdraft.
(c) A payor bank's determination of the customer's account balance on which a decision to dishonor for insufficiency of available funds is based may be made at any time between the time the item is received by the payor bank and the time that the payor bank returns the item or gives notice in lieu of return, and no more than one determination need be made. If, at the election of the payor bank, a subsequent balance determination is made for the purpose of reevaluating the bank's decision to dishonor the item, the account balance at that time is determinative of whether a dishonor for insufficiency of available funds is wrongful.
(1959, P.A. 133, S. 4-402; P.A. 91-304, S. 99.)
History: P.A. 91-304 added Subsec. (a) re when a payor bank bank wrongfully dishonors an item, designated former provisions of section as Subsec. (b) and amended said Subsec. to delete provision that limited liability to actual damages proved "when the dishonor occurs through mistake" and added Subsec. (c) re a payor bank's determination of a customer's account balance.
Cited. 217 C. 205, 212, 215.
Cited. 5 Conn. Cir. Ct. 395.
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