2006 New York Code - Bank\'s Liability To Customer For Wrongful Dishonor.



 
  Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.
    A  payor bank is liable to its customer for damages proximately caused
  by the wrongful dishonor of an item. When the  dishonor  occurs  through
  mistake liability is limited to actual damages proved. If so proximately
  caused  and  proved  damages  may  include  damages  for  an  arrest  or
  prosecution of the customer or other consequential damages. Whether  any
  consequential damages are proximately caused by the wrongful dishonor is
  a question of fact to be determined in each case.

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