Statute · New York Uniform Commercial Code

N.Y. U.C.C. Law § 4-401 — When Bank May Charge Customer's Account

N.Y. U.C.C. Law § 4-401

Type: Statute
Source: New York Uniform Commercial Code
Jurisdiction: New York
Current through: Nov 5, 2026 (NY Senate Open Legislation)

Section 4--401. When Bank May Charge Customer's Account.

Citator

N.Y. U.C.C. Law § 4-401 — When Bank May Charge Customer's Account is in force in the current edition of the Code, and nothing recorded condemns it.

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.