§12A-4-402.

§12A-4-402.
   
            BANK'S LIABILITY TO CUSTOMER FOR WRONGFUL DISHONOR;
                                      
               TIME FOR DETERMINING INSUFFICIENCY OF ACCOUNT
                                      
   (a) Except as otherwise provided in this article, 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.
   
   (b) 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.
   
   (c) A payor bank's determination of the customer's account balance on
   which a decision to dishonor for insufficiency of available funds is
   based and 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 (1)
   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.