2012 Pennsylvania Consolidated Statutes
Title 13 - COMMERCIAL CODE
Chapter 44 - Relationship Between Payor Bank and Its Customer
Section 4402 - Liability of bank to customer for wrongful dishonor; time of determining insufficiency of account

     § 4402.  Liability of bank to customer for wrongful dishonor;
                time of determining insufficiency of account.
        (a)  Wrongful dishonor.--Except as otherwise provided in this
     division, 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.
        (b)  Liability of bank.--A payor bank is liable to its
     customer for damages proximately caused by the wrongful dishonor
     of an item. Liability is limited to actual damages proved and
     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.
        (c)  Determination of bank.--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.
     (July 9, 1992, P.L.507, No.97, eff. one year)

        Cross References.  Section 4402 is referred to in sections
     4401, 4403 of this title.