N.Y. Uniform Commercial Code Law § 4-401: When Bank May Charge Customer's Account

Section 4--401. When Bank May Charge Customer's Account.

(1) As against its customer, a bank may charge against his account any

item which is otherwise properly payable from that account even though

the charge creates an overdraft.

(2) A bank which in good faith makes payment to a holder may charge

the indicated account of its customer according to

(a) the original tenor of his altered item; or

(b) the tenor of his completed item, even though the bank knows

the item has been completed unless the bank has notice that

the completion was improper.