Florida Statute 674.402 | 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. 674.402

674.402 Bank’s liability to customer for wrongful dishonor; time of determining insufficiency of account.—

(1) 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 overdraft.

(2) 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.

(3) 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 no more than one determination need be made. 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.

History.—s. 1, ch. 65-254; s. 39, ch. 92-82.

Note.—s. 4-402, U.C.C.; supersedes s. 659.33.

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Amendments to 674.402

Arrestable Offenses / Crimes under Fla. Stat. 674.402

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

Current data shows no reason an arrest or criminal charge should have occurred directly under Florida Statute 674.402.

Annotations, Discussions, Cases:

Cases Citing Statute 674.402

Total Results: 4

JTM, INC. v. Totalbank

Court: District Court of Appeal of Florida | Date Filed: 2001-09-05

Citation: 795 So. 2d 161, 46 U.C.C. Rep. Serv. 2d (West) 787, 2001 Fla. App. LEXIS 12493, 2001 WL 1007408

Snippet: failed to state a claim for relief under section 674.402, Florida Statutes (1993) because that statute does

BankAtlantic v. Streicher Enterprises, Inc.

Court: District Court of Appeal of Florida | Date Filed: 2000-04-12

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

Snippet: depository contract and violation of sections 674.402 and 674.401 of the Florida Statutes. Streicher

Scott v. NCNB Bank Corp.

Court: District Court of Appeal of Florida | Date Filed: 1994-08-17

Citation: 642 So. 2d 582, 1994 Fla. App. LEXIS 8096

Snippet: on a theory of wrongful dishonor under section 674.402(2), Florida Statutes. Graham v. First Marion Bank

Koger v. East First Nat. Bank

Court: District Court of Appeal of Florida | Date Filed: 1983-12-07

Citation: 443 So. 2d 141, 37 U.C.C. Rep. Serv. (West) 531

Snippet: a cause of action against a bank under section 674.402, Florida Statutes (1981), which tracks the language