§ 34.1-4-401 — When bank may charge customer's account

Wyoming § 34.1-4-401

• Jurisdiction: Wyoming
• Title 34.1: Uniform Commercial Code
• Art. 4: BANK DEPOSITS AND COLLECTIONS

Text

(a) A bank may charge against the account of a customer an
item that is properly payable from that account even though the
charge creates an overdraft. An item is properly payable if it
is authorized by the customer and is in accordance with any
agreement between the customer and bank.
(b) A customer is not liable for the amount of an
overdraft if the customer neither signed the item nor benefited
from the proceeds of the item.
(c) A bank may charge against the account of a customer a
check that is otherwise properly payable from the account, even
though payment was made before the date of the check, unless the
customer has given notice to the bank of the postdating
describing the check with reasonable certainty. The notice is
effective for the period stated in section 34.1-4-403(b) for
stop-payment orders, and must be received at such time and in
such manner as to afford the bank a reasonable opportunity to
act on it before the bank takes any action with respect to the
check described in section 34.1-4-303. If a bank charges
against the account of a customer a check before the date stated
in the notice of postdating, the bank is liable for damages for
the loss resulting from its act. The loss may include damages
for dishonor of subsequent items under section 34.1-4-402.
(d) A bank that in good faith makes payment to a holder
may charge the indicated account of its customer according to:
(i) The original terms of the altered item; or
(ii) The terms of the completed item, even though the
bank knows the item has been completed unless the bank has
notice that the completion was improper.