There is a newer version
of
the New York Laws
2018 New York Laws
UCC - Uniform Commercial Code
Article 4 - Bank Deposits and Collections
Part 4 - Relationship Between Payor Bank and Its Customer
4-401 - When Bank May Charge Customer's Account.
Universal Citation:
NY UCC § 4-401 (2018)
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This media-neutral citation is based
on the American Association of Law Libraries Universal Citation Guide and is not
necessarily the official citation.
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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