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Can you summarize NHRS 382-A:4-401?
UNIFORM COMMERCIAL CODE > When Bank May Charge Customer's Account.
Short Summary
This legal document, part of the New Hampshire Revised Statutes, specifically the Uniform Commercial Code, governs the charging of a customer’s account by a bank. It states that a bank may charge against the customer’s account for items that are properly payable, even if it creates an overdraft. An item is considered properly payable if it is authorized by the customer and in accordance with any agreement between the customer and the bank. The document also specifies that a customer is not liable for an overdraft if they neither signed the item nor benefited from its proceeds. Additionally, it allows a bank to 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 a bank charges against the account for a postdated check before the stated date, the bank may be liable for damages. The document also addresses the bank’s ability to charge the customer’s account based on altered or completed items, as long as the bank is acting in good faith and has no notice of improper completion. Overall, this document establishes the rules and guidelines for when a bank may charge a customer’s account and the liabilities associated with such actions.
Whom does it apply to?
Banks and their customers
What does it govern?
Charging customer's account, overdraft, postdated checks, altered or completed items
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Banks may be liable for damages for charging a postdated check before the date stated in the notice of postdating.
Jurisdiction
New Hampshire