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Can you summarize WYST 34.1-4-401?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > When bank may charge customer's account
Short Summary
This legal document governs the relationship between a payor bank and its customer. It states that a bank may charge against the customer’s account for an item that is properly payable, 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 did not sign the item or benefit from its proceeds. Additionally, the 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 of postdating. If the bank charges against the account before the postdating date, it is liable for damages. Furthermore, a bank that makes payment to a holder in good faith may charge the customer’s account according to the original terms of an altered item or the terms of a completed item, unless it has notice of improper completion.
Whom does it apply to?
Customers and banks
What does it govern?
Relationship between payor bank and its customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank is liable for damages for charging against the account of a customer a check before the date stated in the notice of postdating.
Jurisdiction
Wyoming