2014 New York Laws
UCC - Uniform Commercial Code
Article 4 - BANK DEPOSITS AND COLLECTIONS
Part 4 - (4-401 - 4-408) RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER
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.
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