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This entry was published on 2014-09-22
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SECTION 4-401
When Bank May Charge Customer's Account
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4, PART 4
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.