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. 674.402

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.

F.S. 674.402 on Google Scholar

F.S. 674.402 on Casetext

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 from cite.case.law:

JTM, INC. v. TOTALBANK,, 795 So. 2d 161 (Fla. Dist. Ct. App. 2001)

. . . JTM has failed to state a claim for relief under section 674.402, Florida Statutes (1993) because that . . . Section 674.402(2) provides that a bank is liable for wrongful dishonor of an item drawn on the customer . . . Thus, JTM has failed to state a claim for relief under section 674.402 because it does not apply to cashier . . . Section 674.402(2) provides: A payor bank is liable to its customer lor damages proximately caused by . . .

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

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

MOSIEZNICKI n k a v. NCNB BANK CORPORATION,, 642 So. 2d 582 (Fla. Dist. Ct. App. 1994)

. . . defendant bank on that portion of Appellant’s claim founded on a theory of wrongful dishonor under section 674.402 . . .

In GERI ZAHN, INC. d b a L. P. GOVAERT, v. FIRST AMERICAN BANK AND TRUST COMPANY,, 135 B.R. 912 (Bankr. S.D. Fla. 1991)

. . . Plaintiff) for the Defendant’s First American Bank & Trust Company (FABT) violation of Florida Statutes §§ 674.402 . . . FABT wrongfully dishonored the Debtor’s checks, in violation of Florida Statutes § 674.402, ruining the . . . Fla.Stat. § 674.402. . . . Many courts analyzing U.C.C. 4-402, which Florida Statute § 674.402 codifies, have held that a Plaintiff . . . result since Vlock and the Zahns might not have a cause of action against FABT under Florida Statutes § 674.402 . . .

L. KOGER, v. EAST FIRST NATIONAL BANK, a, 443 So. 2d 141 (Fla. Dist. Ct. App. 1983)

. . . concerns whether an individual corporate stockholder has a cause of action against a bank under section 674.402 . . . That relationship, in turn, is the subject of section 674.402. . . . Section 674.402 provides: A payor bank is liable to its customer for damages proximately caused by the . . . We choose to adhere to the more literal interpretation of section 674.402, which follows the interpretation . . . Although the language of section 4-402 is identical to that of section 674.402,. we choose to disagree . . .