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New York Consolidated Laws, Uniform Commercial Code - UCC § 4-401. When Bank May Charge Customer's Account

Current as of January 01, 2026 | Updated by Findlaw Staff

(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.

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Cite this article: FindLaw.com - New York Consolidated Laws, Uniform Commercial Code - UCC § 4-401. When Bank May Charge Customer's Account - last updated January 01, 2026 | https://codes.findlaw.com/ny/uniform-commercial-code/ucc-sect-4-401/

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