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Can you summarize MORS 400.4-401?
Relationship Between Payor Bank and Its Customer > When bank may charge customer's account.
Short Summary
This legal document, part of the Revised Statutes of Missouri, specifically addresses the relationship between a payor bank and its customer in the context of bank deposits and collections. It outlines the circumstances under which a bank may charge a customer’s account, including when an item is properly payable and authorized by the customer. The document also discusses the bank’s ability to charge 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. It further states that a bank that makes payment to a holder in good faith may charge the customer’s account according to the original or completed terms of the altered item, unless the bank has notice of improper completion. Additionally, the document specifies that a bank shall not be liable for charging against a customer’s account a postdated check, unless the bank has received written notice in advance from the customer. The document does not mention any specific exemptions. Overall, it provides guidelines and provisions for the charging of a customer’s account by a bank in various scenarios.
Whom does it apply to?
Banks and their customers
What does it govern?
Relationship between Payor Bank and Its Customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank may be liable for damages if it charges against the customer's account a check before the date stated in the notice of postdating.
Jurisdiction
Missouri