New York § 4-401 When Bank May Charge Customer's Account

New York Statutes

§ 4-401 — When Bank May Charge Customer's Account

New York § 4-401

Law UCCUniform Commercial Code

Part 4Relationship Between Payor Bank and Its Customer

Art. 4Bank Deposits and Collections

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Bluebook

N.Y. Uniform Commercial Code § 4-401 (2026).

Text

Section 4--401. When Bank May Charge Customer's Account.\n  (1) As against its customer, a bank may charge against his account any\nitem which is otherwise properly payable from that account even though\nthe charge creates an overdraft.\n  (2) A bank which in good faith makes payment to a holder may charge\nthe indicated account of its customer according to\n       (a) the original tenor of his altered item; or\n       (b) the tenor of his completed item, even though the bank knows\n           the item has been completed unless the bank has notice that\n           the completion was improper.\n

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Section 4--401. When Bank May Charge Customer's Account.\n (1) As against its customer, a bank may charge against his account any\nitem which is otherwise properly payable from that account even though\nthe charge creates an overdraft.\n (2) A bank which in good faith makes payment to a holder may charge\nthe indicated account of its customer according to\n (a) the original tenor of his altered item; or\n (b) the tenor of his completed item, even though the bank knows\n the item has been completed unless the bank has notice that\n the completion was improper.\n