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Can you summarize NVRS 104.4401?
Uniform Commercial CodeOriginal Articles > When bank may charge customers account.
Short Summary
This legal document, part of the Nevada Revised Statutes, specifically addresses the circumstances under which a bank may charge a customer’s account. According to the document, a bank is allowed to charge any item that is properly payable from the customer’s 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, the customer is not held liable for an overdraft if they did not sign the item or benefit from its proceeds. The document also states that a bank can 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 to the bank. If the bank charges the check before the stated date, it is liable for damages. Additionally, the document outlines the bank’s rights and responsibilities when dealing with altered or completed items. Overall, this document provides guidelines for banks and customers regarding the charging of customer accounts.
Whom does it apply to?
Banks and their customers
What does it govern?
Charging a customer's account by a bank
What are exemptions?
The customer is not liable for the amount of an overdraft if they neither signed the item nor benefited from the proceeds of the item.
What are the Penalties?
If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent items.
Jurisdiction
Nevada