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Can you summarize ORRS 74.4010?
Bank Deposits and Collections > When bank may charge customers account.
Short Summary
This legal document, found in the Oregon Revised Statutes, specifically in the Business Organizations, Commercial Code, Commercial Transactions - Chapters 71-84, governs the rules regarding bank deposits and collections. It outlines the circumstances under which a bank may charge a customer’s account, even if it results in an overdraft. The document states that an item is properly payable if it is authorized by the customer and in accordance with any agreement between the customer and the bank. It also clarifies that a customer is not liable for an overdraft if they neither signed the item nor benefited from its proceeds. Additionally, the document allows a bank to charge a check from a customer’s account, even if payment was made before the date of the check, unless the customer has given notice of postdating. The notice must be received by the bank in a timely manner to afford them a reasonable opportunity to act on it. If a bank charges against the account before the date stated in the notice, the bank is liable for damages. The document also addresses the bank’s liability when making payment to a holder of an altered or completed item. Overall, this document provides guidelines for banks and customers regarding the charging of accounts and the handling of checks.
Whom does it apply to?
Customers and banks
What does it govern?
Bank Deposits and Collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Damages for dishonor of subsequent items under ORS 74.4020
Jurisdiction
Oregon