- Alaska Statutes.
- Title 45. Trade and Commerce
- Chapter 4. Bank Deposits and Collections
- Section 402. Bank's Liability to Customer For Wrongful Dishonor; Time of Determining Insufficiency of Account.
previous: Section 401
. When Bank May Charge Customer's Account.
next: Section 403
. Customer's Right to Stop Payment; Burden of Proof of Loss.
AS 45.04.402. Bank's Liability to Customer For Wrongful Dishonor; Time of Determining Insufficiency of Account.
- (a) Except as otherwise provided in this chapter, a payor bank wrongfully dishonors an item if it dishonors an item that
is properly payable, but a bank may dishonor an item that would create an overdraft unless it has agreed to pay the
- (b) A payor bank is liable to its customer for damages proximately caused by the wrongful dishonor of an item. Liability
is limited to actual damages proved and may include damages for an arrest or prosecution of the customer or other
consequential damages. Whether any consequential damages are proximately caused by the wrongful dishonor is a question
of fact to be determined in each case.
- (c) A payor bank's determination of the customer's account balance on which a decision to dishonor for insufficiency of
available funds is based may be made at any time between the time the item is received by the payor bank and the time
that the payor bank returns the item or gives notice in lieu of return, and the bank does not need to make more than
one determination. If, at the election of the payor bank, a subsequent balance determination is made for the purpose of
reevaluating the bank's decision to dishonor the item, the account balance at that time is determinative of whether a
dishonor for insufficiency of available funds is wrongful.
All content © 2008 by Touch
N' Go/Bright Solutions, Inc.
Note to HTML Version:
This version of the Alaska Statutes is current through December, 2007. The Alaska Statutes were automatically converted to HTML from a plain text format. Every effort has been made to ensure their accuracy, but this can not be guaranteed. If it is critical that the precise terms of the Alaska Statutes be known, it is recommended that more formal sources be consulted. For statutes adopted after the effective date of these statutes, see, Alaska State Legislature
If any errors are found, please e-mail Touch N' Go systems at E-mail. We
hope you find this information useful.