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Can you summarize AKST 45.04.401?
Relationship Between Payor Bank and Its Customer. > When bank may charge customer's account.
Short Summary
This legal document, found in the Alaska Statutes under Trade and Commerce, Bank Deposits and Collections, governs the relationship between a payor bank and its customer. According to this document, a bank has the authority to charge a customer’s account for an item that is properly payable from that account, even if it creates an overdraft. An item is considered properly payable if it is authorized by the customer and complies with any agreement between the customer and the bank. However, a customer is not liable for the amount of an overdraft if they did not sign the item or benefit from its proceeds. Additionally, a bank may charge a customer’s account for a check that is otherwise properly payable, even if payment was made before the date of the check, unless the customer has given notice of postdating to the bank. If a bank charges against the account before the stated date in the notice, the bank is liable for damages. Furthermore, a bank that makes payment to a holder in good faith may charge the customer’s account according to the original terms of an altered item or the terms of a completed item, unless the bank has notice of improper completion. This document provides references to other relevant statutes for further information.
Whom does it apply to?
Customers and banks
What does it govern?
Relationship between Payor Bank and Its Customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Damages for dishonor of subsequent items under AS 45.04.402
Jurisdiction
Alaska