New York Uniform Commercial Code Law Section 4-401 - When Bank May Charge Customer's Account.

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

Last modified: February 3, 2019