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Can you summarize NVRS 104.4402?
Uniform Commercial CodeOriginal Articles > Banks liability to customer for wrongful dishonor; time of determining insufficiency of account.
Short Summary
This legal document pertains to the liability of a payor bank to its customer for wrongful dishonor of an item. The payor bank wrongfully dishonors an item if it dishonors an item that is properly payable, unless it has agreed to pay the overdraft. The payor bank is liable to its customer for damages caused by the wrongful dishonor, which may include actual damages, damages for arrest or prosecution of the customer, or other 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 return. If a subsequent determination is made for reevaluating the bank’s decision, the account balance at that time determines whether the dishonor for insufficiency of available funds is wrongful.
Whom does it apply to?
Payor banks and their customers
What does it govern?
Banks 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
Nevada