Florida Statute 674.401 | Lawyer Caselaw & Research

The 2024 Florida Statutes

Title XXXIX
COMMERCIAL RELATIONS

Chapter 674
UNIFORM COMMERCIAL CODE: BANK DEPOSITS AND COLLECTIONS

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F.S. 674.401

674.401 When bank may charge customer’s account.—

(1) 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 bank.

(2) 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.

(3) 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 s. 674.403(2) 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 s. 674.303. 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 s. 674.402.

(4) A bank that in good faith makes payment to a holder may charge the indicated account of its customer according to:

(a) The original terms of the altered item; or

(b) 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.

History.—s. 1, ch. 65-254; s. 38, ch. 92-82.

Note.—s. 4-401, U.C.C.; supersedes ss. 674.15-674.17, 675.32.

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Amendments to 674.401

Arrestable Offenses / Crimes under Fla. Stat. 674.401

Level: Degree
Misdemeanor/Felony: First/Second/Third

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 674.401.

Annotations, Discussions, Cases:

Cases Citing Statute 674.401

Total Results: 8

Gustavsson v. Washington Mut. Bank, FA

Court: Fla. Dist. Ct. App. | Date Filed: 2003-06-04T00:53:00-07:00

Citation: 850 So. 2d 570

Snippet: negligence, and violations of sections 670.204 and 674.401, Florida Statutes. [3] Here the lower court found

BankAtlantic v. Streicher Enterprises, Inc.

Court: Fla. Dist. Ct. App. | Date Filed: 2000-04-12T00:00:00-07:00

Citation: 756 So. 2d 195, 2000 Fla. App. LEXIS 4279, 2000 WL 368927

Snippet: contract and violation of sections 674.402 and 674.401 of the Florida Statutes. Streicher alleged, among

Burdine-Coakley v. Capital Bank

Court: Fla. Dist. Ct. App. | Date Filed: 1989-03-27T23:53:00-08:00

Citation: 542 So. 2d 1019

Snippet: unauthorized payments from Mr. Coles's account, see § 674.401, Fla. Stat. (1983), was the plaintiff's failure

DYNAMITE ENTERPRIESE, INC. v. Eagle National Bank of Miami

Court: Fla. Dist. Ct. App. | Date Filed: 1987-12-28T23:53:00-08:00

Citation: 517 So. 2d 112

Snippet: charge the customer's account under Section 674.401(1), Florida Statutes (1985). It follows, then,

Brown v. Lee County Bank

Court: Fla. Dist. Ct. App. | Date Filed: 1987-01-28T00:00:00-08:00

Citation: 501 So. 2d 702, 12 Fla. L. Weekly 420, 2 U.C.C. Rep. Serv. 2d (West) 1610, 1987 Fla. App. LEXIS 6508

Snippet: favor of the bank for $40,000. We affirm. Section 674.401(1), Florida Statutes (1983), provides: (1) As against

Mjz Corp. v. Gulfstream First Bank

Court: Fla. Dist. Ct. App. | Date Filed: 1982-10-13T00:53:00-07:00

Citation: 420 So. 2d 396

Snippet: seq., Florida Statutes (1981), applies. Section 674.401(1), Florida Statutes (1981), states the following

Jackson Vitrified v. People's Am.

Court: Fla. Dist. Ct. App. | Date Filed: 1980-09-16T00:53:00-07:00

Citation: 388 So. 2d 1059

Snippet: banks for improper payment on the checks, under § 674-401, Fla. Stat. (1975), UCC § 4-401 (1962). At that

Dirk v. State

Court: Fla. | Date Filed: 1974-05-29T00:53:00-07:00

Citation: 305 So. 2d 187

Snippet: within the discretion of the bank. See Section 674.401, F.S. Finally, it appears to me that the statute