ENROLLED SENATE
BILL NO. 287	By:	Jolley of the Senate

			and

		Russ of the House

An Act relating to banking procedures; amending 12A O.S. 2001, Section 4-401, which relates to when a bank may charge a customer’s account; clarifying when certain claim accrues; and providing an effective date.

SUBJECT:  Banking procedures

BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:

SECTION 1.     AMENDATORY     12A O.S. 2001, Section 4-401, is amended to read as follows:

Section 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 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.

(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 subsection (b) of Section 4-403 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 or 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.

(e)  The statute of limitations on a customer’s claim that an item charged against an account is not properly payable due to a forged or unauthorized indorsement begins on the date the item is finally paid by the bank, without regard to care or lack of care of either the customer or the bank.

SECTION 2.  This act shall become effective November 1, 2011.

Passed the Senate the 7th day of March, 2011.

	
Presiding Officer 	of the Senate

Passed the House of Representatives the 31st day of March, 2011.

	
Presiding Officer of the House
	of Representatives