The 2023 Florida Statutes (including Special Session C)

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.

F.S. 674.401 on Google Scholar

F.S. 674.401 on Casetext

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 from cite.case.law:

ANDERSON, v. BRANCH BANKING AND TRUST COMPANY, LLC,, 119 F. Supp. 3d 1328 (S.D. Fla. 2015)

. . . . §§ 674.401 and 670.204, and by the absolute liability preclusions in Fla. . . .

ANDERSON, v. BRANCH BANKING AND TRUST COMPANY, LLC,, 56 F. Supp. 3d 1345 (S.D. Fla. 2014)

. . . More specifically, BB & T contends that §§ 674.401 and 670.204, Florida Statutes, codifying U.C.C. §§ . . .

K. BULLARD, v. CAPITAL ONE, F. S. B., 288 F. Supp. 2d 1256 (N.D. Fla. 2003)

. . . See §§ 673.4011 & 674.401, Fla. Stat. (2002). . See §§ 772.11 & 812.014(1), Fla. Stat. (2002). . . . .

GUSTAVSSON, v. WASHINGTON MUTUAL BANK, F. A., 850 So. 2d 570 (Fla. Dist. Ct. App. 2003)

. . . theft, breach of fiduciary duty, negligence, gross negligence, and violations of sections 670.204 and 674.401 . . .

ARKWRIGHT MUTUAL INSURANCE CO. v. NATIONSBANK, N. A. SOUTH f. k. a. N. A. N. A., 212 F.3d 1224 (11th Cir. 2000)

. . . Arkwright’s U.C.C. cause of action is based on Florida Uniform Commercial Code Statute § 674.401 which . . . Stat. § 674.401(1), a check that would not otherwise be properly payable becomes properly payable if . . .

v. STREICHER ENTERPRISES, INC. a, 756 So. 2d 195 (Fla. Dist. Ct. App. 2000)

. . . complaint, Streicher alleged breach of a depository contract and violation of sections 674.402 and 674.401 . . .

FEDERAL INSURANCE COMPANY, v. NCNB NATIONAL BANK OF NORTH CAROLINA, NCNB, 958 F.2d 1544 (11th Cir. 1992)

. . . . § 674.401(1)) similarly contemplates that a bank will pay only in accordance with its contractual obligations . . .

H. BURDINE- COAKLEY, v. CAPITAL BANK,, 542 So. 2d 1019 (Fla. Dist. Ct. App. 1989)

. . . Coles’s account, see § 674.401, Fla.Stat. (1983), was the plaintiff’s failure to comply with section . . .

DYNAMITE ENTERPRISES, INC. v. EAGLE NATIONAL BANK OF MIAMI,, 517 So. 2d 112 (Fla. Dist. Ct. App. 1987)

. . . discretion, may honor the overdrawn check and thereafter charge the customer’s account under Section 674.401 . . .

L. BROWN, v. LEE COUNTY BANK,, 501 So. 2d 702 (Fla. Dist. Ct. App. 1987)

. . . Section 674.401(1), Florida Statutes (1983), provides: (1) As against its customer, a bank may charge . . .

MJZ CORPORATION J. v. GULFSTREAM FIRST BANK TRUST, N. A., 420 So. 2d 396 (Fla. Dist. Ct. App. 1982)

. . . Section 674.401(1), Florida Statutes (1981), states the following: “As against its customer, a bank may . . .

In BOOGAART OF FLORIDA, INC., 23 B.R. 157 (Bankr. S.D. Fla. 1982)

. . . Florida Statutes §§ 674.201, 674.212 and 674.401 (1981). . . .

DIRK, STATE, 305 So. 2d 187 (Fla. 1974)

. . . See Section 674.401, F.S. . . .