§ 8.4-401. When bank may charge customer's account.
(a) A bank may charge against the account of a customer an item that isproperly payable from that account even though the charge creates anoverdraft. An item is properly payable if it is authorized by the customerand is in accordance with any agreement between the customer and the bank.
(b) A customer is not liable for the amount of an overdraft if the customerneither 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 isotherwise properly payable from the account, even though payment was madebefore the date of the check, unless the customer has given notice to thebank of the postdating describing the check with reasonable certainty. Thenotice is effective for the period stated in § 8.4-403 (b) for stop-paymentorders, and must be received at such time and in such manner as to afford thebank a reasonable opportunity to act on it before the bank takes any actionwith respect to the check described in § 8.4-303. If a bank charges againstthe account of a customer a check before the date stated in the notice ofpostdating, the bank is liable for damages for the loss resulting from itsact. The loss may include damages for dishonor of subsequent items under §8.4-402.
(d) A bank that in good faith makes payment to a holder may charge theindicated account of its customer according to:
(1) the original terms of the altered item; or
(2) the terms of the completed item, even though the bank knows the item hasbeen completed unless the bank has notice that the completion was improper.
§ 8.4-401. When bank may charge customer's account.
(a) A bank may charge against the account of a customer an item that isproperly payable from that account even though the charge creates anoverdraft. An item is properly payable if it is authorized by the customerand is in accordance with any agreement between the customer and the bank.
(b) A customer is not liable for the amount of an overdraft if the customerneither 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 isotherwise properly payable from the account, even though payment was madebefore the date of the check, unless the customer has given notice to thebank of the postdating describing the check with reasonable certainty. Thenotice is effective for the period stated in § 8.4-403 (b) for stop-paymentorders, and must be received at such time and in such manner as to afford thebank a reasonable opportunity to act on it before the bank takes any actionwith respect to the check described in § 8.4-303. If a bank charges againstthe account of a customer a check before the date stated in the notice ofpostdating, the bank is liable for damages for the loss resulting from itsact. The loss may include damages for dishonor of subsequent items under §8.4-402.
(d) A bank that in good faith makes payment to a holder may charge theindicated account of its customer according to:
(1) the original terms of the altered item; or
(2) the terms of the completed item, even though the bank knows the item hasbeen completed unless the bank has notice that the completion was improper.
§ 8.4-401. When bank may charge customer's account.
(a) A bank may charge against the account of a customer an item that isproperly payable from that account even though the charge creates anoverdraft. An item is properly payable if it is authorized by the customerand is in accordance with any agreement between the customer and the bank.
(b) A customer is not liable for the amount of an overdraft if the customerneither 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 isotherwise properly payable from the account, even though payment was madebefore the date of the check, unless the customer has given notice to thebank of the postdating describing the check with reasonable certainty. Thenotice is effective for the period stated in § 8.4-403 (b) for stop-paymentorders, and must be received at such time and in such manner as to afford thebank a reasonable opportunity to act on it before the bank takes any actionwith respect to the check described in § 8.4-303. If a bank charges againstthe account of a customer a check before the date stated in the notice ofpostdating, the bank is liable for damages for the loss resulting from itsact. The loss may include damages for dishonor of subsequent items under §8.4-402.
(d) A bank that in good faith makes payment to a holder may charge theindicated account of its customer according to:
(1) the original terms of the altered item; or
(2) the terms of the completed item, even though the bank knows the item hasbeen completed unless the bank has notice that the completion was improper.
