N.Y. U.C.C. 4-401

Section 4--401. When Bank May Charge Customer's Account.\n (1) As against its customer, a bank may charge against his account any\nitem which is otherwise properly payable from that account even though\nthe charge creates an overdraft.\n (2) A bank which in good faith makes payment to a holder may charge\nthe indicated account of its customer according to\n (a) the original tenor of his altered item; or\n (b) the tenor of his completed item, even though the bank knows\n the item has been completed unless the bank has notice that\n the completion was improper.\n