- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 4. Bank Deposits and Collections
- Section 401. When Bank May Charge Customer's Account.
previous: Section 303
. When Items Subject to Notice, Stop-Payment Order, Legal Process, or Setoff; Order in Which Items May Be Charged or Certified.
next: Section 402
. Bank's Liability to Customer For Wrongful Dishonor; Time of Determining Insufficiency of Account.
AS 45.04.401. When Bank May Charge Customer's Account.
- (a) A bank may charge against the account of a customer an item that is properly payable from that account even though the
charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance with
any agreement between the customer and the bank.
- (b) A customer is not liable for the amount of an overdraft if the customer neither signed the item nor benefitted from
the proceeds of the item.
- (c) A bank may charge against the account of a customer a check that is otherwise properly payable from the account, even
though payment was made before the date of the check, unless the customer has given notice to the bank of the
postdating describing the check with reasonable certainty. The notice is effective for the period stated in AS 45.04.403(b) for stop-payment orders, and must be
received at a time and in a manner that afford the bank a reasonable opportunity to act on it before the bank takes any
action with respect to the check described in AS 45.04.303
. If a bank charges against the account of a customer a check before the date stated in the notice of postdating, the
bank is liable for damages for the loss resulting from its act. The loss may include damages for dishonor of subsequent
items under AS 45.04.402
- (d) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to
- (1) the original terms of the altered item; or
- (2) the terms of the completed item, even though the bank knows the item has been completed, unless the bank has notice
that the completion was improper.
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