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Can you summarize AZRS 47-4401?
When bank may charge customer's account
Short Summary
This legal document governs the circumstances under which a bank may charge a customer’s account. According to the document, a bank is allowed to charge against the customer’s account for an item that is properly payable, 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, the bank may charge a check from the customer’s account, even if payment was made before the date of the check, unless the customer has given notice of postdating. If the bank charges a check before the date stated in the notice, it is liable for damages. The document also states that a bank can charge the customer’s account based on the original terms of an altered item or the terms of a completed item, unless the bank has notice of improper completion. Overall, this document provides guidelines for when a bank can charge a customer’s account and outlines the liabilities and responsibilities of both parties involved.
Whom does it apply to?
Customers and banks
What does it govern?
Bank charges against customer's account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank is liable for damages for the loss resulting from charging a check before the date stated in the notice of postdating.
Jurisdiction
Arizona