New York § 4-402 Bank's Liability to Customer for Wrongful Dishonor

New York Statutes

§ 4-402 — Bank's Liability to Customer for Wrongful Dishonor

New York § 4-402

Law UCCUniform Commercial Code

Part 4Relationship Between Payor Bank and Its Customer

Art. 4Bank Deposits and Collections

This text of New York § 4-402 (Bank's Liability to Customer for Wrongful Dishonor) is published on Counsel Stack Legal Research, covering New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

N.Y. Uniform Commercial Code § 4-402 (2026).

Text

Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.\n  A payor bank is liable to its customer for damages proximately caused\nby the wrongful dishonor of an item. When the dishonor occurs through\nmistake liability is limited to actual damages proved. If so proximately\ncaused and proved damages may include damages for an arrest or\nprosecution of the customer or other consequential damages. Whether any\nconsequential damages are proximately caused by the wrongful dishonor is\na question of fact to be determined in each case.\n

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Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.\n A payor bank is liable to its customer for damages proximately caused\nby the wrongful dishonor of an item. When the dishonor occurs through\nmistake liability is limited to actual damages proved. If so proximately\ncaused and proved damages may include damages for an arrest or\nprosecution of the customer or other consequential damages. Whether any\nconsequential damages are proximately caused by the wrongful dishonor is\na question of fact to be determined in each case.\n