The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 4-401)
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§ 4—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 the 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 bank.
(b) A customer is not liable for the amount of an overdraft if the customer neither signed
the item nor benefited 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
section 4—403(b) of this title for stop-payment orders, and must be received at such time and in such manner as
to afford the bank a reasonable opportunity to act on it before the bank takes any
action with respect to the check described in section 4—303 of this title. 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
section 4—402 of this title.
(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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)