Legislation
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.
(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.