Florida Statute 674.401 - Full Text and Legal Analysis

The 2025 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

Annotations, Discussions, Cases:

Cases Citing Statute 674.401

Total Results: 9

Federal Insurance Company, Cross-Appellee v. Ncnb National Bank of North Carolina, Cross-Appellant, Ncnb National Bank of Florida

958 F.2d 1544, 17 U.C.C. Rep. Serv. 2d (West) 497, 1992 U.S. App. LEXIS 7572, 1992 WL 69636

Court of Appeals for the Eleventh Circuit | Filed: Apr 24, 1992 | Docket: 126991

Cited 16 times | Published

the Uniform Commercial Code (UCC) (Fla.Stat. § 674.401(1)) similarly contemplates that a bank will pay

Jackson Vitrified v. People's Am.

388 So. 2d 1059, 30 U.C.C. Rep. Serv. (West) 281

District Court of Appeal of Florida | Filed: Sep 16, 1980 | Docket: 1520867

Cited 11 times | Published

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

Mjz Corp. v. Gulfstream First Bank

420 So. 2d 396, 35 U.C.C. Rep. Serv. (West) 210

District Court of Appeal of Florida | Filed: Oct 13, 1982 | Docket: 1307015

Cited 9 times | Published

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

Dirk v. State

305 So. 2d 187

Supreme Court of Florida | Filed: May 29, 1974 | Docket: 457065

Cited 4 times | Published

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

Burdine-Coakley v. Capital Bank

542 So. 2d 1019, 9 U.C.C. Rep. Serv. 2d (West) 1311, 14 Fla. L. Weekly 782, 1989 Fla. App. LEXIS 1577, 1989 WL 27904

District Court of Appeal of Florida | Filed: Mar 28, 1989 | Docket: 468840

Cited 2 times | Published

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

Brown v. Lee County Bank

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

District Court of Appeal of Florida | Filed: Jan 28, 1987 | Docket: 64624666

Cited 1 times | Published

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

Arkwright Mutual Ins. Co. v. Bank of America, N.A.

212 F.3d 1224, 41 U.C.C. Rep. Serv. 2d (West) 726, 2000 U.S. App. LEXIS 11737, 2000 WL 679165

Court of Appeals for the Eleventh Circuit | Filed: May 25, 2000 | Docket: 2038019

Published

based on Florida Uniform Commercial Code Statute § 674.401 which provides that a bank may only charge against

Arkwright Mutual Ins. Co. v. Bank of America, N.A.

212 F.3d 1224

Court of Appeals for the Eleventh Circuit | Filed: May 25, 2000 | Docket: 395802

Published

based on Florida Uniform Commercial Code Statute § 674.401 which provides that a bank may only charge against

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

517 So. 2d 112, 13 Fla. L. Weekly 29, 5 U.C.C. Rep. Serv. 2d (West) 678, 1987 Fla. App. LEXIS 11791, 1987 WL 3375

District Court of Appeal of Florida | Filed: Dec 29, 1987 | Docket: 540367

Published

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