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Can you summarize WIST 404.401?
When bank may charge customer's account.
Short Summary
This legal document, part of the Wisconsin Statutes Uniform Commercial Code, governs the charging of a customer’s account by a bank. According to this document, a bank may charge against the account of a customer for an item that is properly payable from that account, even if it creates an overdraft. An item is considered properly payable if it is authorized by the customer and in accordance with any agreement between the customer and the bank. The 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 against the customer’s account for a check that is otherwise properly payable, even if payment was made before the date of the check, unless the customer has given notice to the bank of the postdating. If a bank charges against the account before the date stated in the notice, the bank is liable for damages. This document also outlines the circumstances under which a bank can charge the customer’s account based on the original or completed terms of an altered item. The penalties for non-compliance include damages for dishonor of subsequent items under s. 404.402.
Whom does it apply to?
Banks and customers
What does it govern?
Uniform Commercial Code Bank Deposits and Collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
Damages for dishonor of subsequent items under s. 404.402
Jurisdiction
Wisconsin