{"data":{"id":"us-ny/n.y.-uniform-commercial-code-law-4-401","jurisdiction":"us-ny","citation":"N.Y. Uniform Commercial Code Law § 4-401","heading":"When Bank May Charge Customer's Account","body":"Section 4--401. When Bank May Charge Customer's Account.\n  (1) As against its customer, a bank may charge against his account any\nitem which is otherwise properly payable from that account even though\nthe charge creates an overdraft.\n  (2) A bank which in good faith makes payment to a holder may charge\nthe indicated account of its customer according to\n       (a) the original tenor of his altered item; or\n       (b) the tenor of his completed item, even though the bank knows\n           the item has been completed unless the bank has notice that\n           the completion was improper.","path":["Uniform Commercial Code Law","Article 4. Bank Deposits and Collections","Part 4. Relationship Between Payor Bank and Its Customer"],"source_url":"https://legislation.nysenate.gov/api/3/laws/UCC/4-401","current_through":"2026-09-11","vintage":"","retrieved_at":"2026-09-14T19:32:45Z","sha256":"3827ce15c7b0bf6acdbdb54bc5b06a876e9ac4a1652f0e377421c01300410dff","source_id":"us-ny","stale":false,"prev":"us-ny/n.y.-uniform-commercial-code-law-4-303","next":"us-ny/n.y.-uniform-commercial-code-law-4-402"},"notice":"GroundRules: Original legal text. Not legal advice."}