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Can you summarize NDCC Section 41-04-32?
Bank Deposits and Collections > (4-401) When bank may charge customer's account.
Short Summary
This legal document, part of the North Dakota Century Code’s Uniform Commercial Code, governs the charging of a customer’s account by a bank. According to the document, a bank may 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 neither signed the item nor benefited from its proceeds. The document also states that 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 to the bank of the postdating. If a bank charges against the account before the date stated in the notice, the bank is liable for damages. Additionally, the document specifies that 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 that the completion was improper.
Whom does it apply to?
Customers and banks
What does it govern?
Bank Deposits and Collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Damages for dishonor of subsequent items pursuant to section 41-04-33
Jurisdiction
North Dakota