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Can you summarize OHRC Section 1304.30?
Bank Deposits And Collections > When bank may charge customer's account - UCC 4-401.
Short Summary
This legal provision, UCC 4-401, governs the circumstances under which a bank may charge a customer’s account. According to this provision, a bank is allowed to 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 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. Additionally, a bank may charge a check against the customer’s account, even if the payment was made before the date of the check, unless the customer has given notice to the bank of the postdating and describes the check with reasonable certainty. 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. This provision also states that a bank that makes payment to a holder in good faith may charge the customer’s account according to the original terms of the altered item or the terms of the completed item, unless the bank has notice that the completion was improper.
Whom does it apply to?
Banks and customers
What does it govern?
Charging customer's account for properly payable items, overdrafts, and postdated checks
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank is liable for damages if it charges against the account of a customer a check before the date stated in the notice of postdating.
Jurisdiction
Ohio