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The Laws of New York
Consolidated Laws of New York
CHAPTER 38
Uniform Commercial Code
ARTICLE 4
Bank Deposits and Collections
PART 4
Relationship Between Payor Bank and Its Customer
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SECTION 4-401
When Bank May Charge Customer's Account
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PART 4
Relationship Between Payor Bank and Its Customer
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SECTION 4-403
Customer's Right to Stop Payment; Burden of Proof of Loss
This entry was published on 2014-09-22
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SECTION 4-402
Bank's Liability to Customer for Wrongful Dishonor
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4, PART 4
Section 4--402. Bank's Liability to Customer for Wrongful Dishonor.

A payor bank is liable to its customer for damages proximately caused
by the wrongful dishonor of an item. When the dishonor occurs through
mistake liability is limited to actual damages proved. If so proximately
caused and proved damages 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.