Section 400.4-401 – When bank may charge customer’s account.

Effective – 28 Aug 1994 400.4-401. When bank may charge customer’s account. — (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 […]

Section 400.4-402 – Bank’s liability to customer for wrongful dishonor — time of determining insufficiency of account.

Effective – 28 Aug 1992 400.4-402. Bank’s liability to customer for wrongful dishonor — time of determining insufficiency of account. — (a) Except as otherwise provided in this Article, a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, but a bank may dishonor an item that would create […]

Section 400.4-403 – Customer’s right to stop payment — burden of proof of loss.

Effective – 28 Aug 1992 400.4-403. Customer’s right to stop payment — burden of proof of loss. — (a) A customer or any person authorized to draw on the account if there is more than one person may stop payment of any item drawn on the customer’s account or close the account by an order […]

Section 400.4-404 – Bank not obligated to pay check more than six months old.

Effective – 28 Aug 1992 400.4-404. Bank not obligated to pay check more than six months old. — A bank is under no obligation to a customer having a checking account to pay a check, other than a certified check, that is presented more than six months after its date, but it may charge its […]

Section 400.4-405 – Death or incompetence of customer.

Effective – 28 Aug 1992 400.4-405. Death or incompetence of customer. — (a) A payor or collecting bank’s authority to accept, pay, or collect an item or to account for proceeds of its collection, if otherwise effective, is not rendered ineffective by incompetence of a customer of either bank existing at the time the item […]

Section 400.4-406 – Customer’s duty to discover and report unauthorized signature or alteration.

Effective – 28 Aug 1992 400.4-406. Customer’s duty to discover and report unauthorized signature or alteration. — (a) A bank that sends or makes available to a customer a statement of account showing payment of items for the account shall either return or make available to the customer the items paid or provide information in […]

Section 400.4-407 – Payor bank’s right to subrogation or improper payment.

Effective – 28 Aug 1992 400.4-407. Payor bank’s right to subrogation or improper payment. — If a payor bank has paid an item over the order of the drawer or maker to stop payment, or after an account has been closed, or otherwise under circumstances giving a basis for objection by the drawer or maker, […]