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Can you summarize NHRS 382-A:4-402?
UNIFORM COMMERCIAL CODE > Bank's Liability to Customer for Wrongful Dishonor; Time of Determining Insufficiency of Account.
Short Summary
This legal document governs the liability of a payor bank to its customer for wrongful dishonor of an item. It states that a payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, unless the bank has agreed to pay the overdraft. The document defines wrongful dishonor to include a refusal by a payor bank to honor an item that is otherwise properly payable, if the payee presents the item in person, properly endorses it, and provides reliable identification. The payor bank is liable to its customer for damages caused by the wrongful dishonor, including consequential damages. The determination of the customer’s account balance on which the decision to dishonor is based can be made at any time between the receipt of the item and the return of the item or notice of dishonor. If the payor bank elects to make a subsequent balance determination, the account balance at that time determines whether the dishonor for insufficiency of funds is wrongful.
Whom does it apply to?
Payor banks and their customers
What does it govern?
Bank's Liability to Customer for Wrongful Dishonor; Time of Determining Insufficiency of Account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Liability of the payor bank to its customer for damages caused by wrongful dishonor
Jurisdiction
New Hampshire