New Jersey § 12a:4-401

§ 12a:4-401.

a. A bank may charge against the account of a customer an item that is properly payable

from that account even though the charge creates an overdraft. An item is properly payable if it is authorized by the customer and is in accordance

with any agreement between the customer and bank. b. A customer is not liable for the amount of an overdraft if the customer neither

signed the item nor benefited from the proceeds of the item. c. A bank may charge against the account of a customer a check that is otherwise properly

payable from the account, even though payment was made before the date of the check,

unless the customer has given notice to the bank of the postdating describing the

check with reasonable certainty. The notice is effective for the period stated in subsection b. of 12A:4-403 for

stop-payment orders, and must be received at such time and in such manner as to afford

the bank a reasonable opportunity to act on it before the bank takes any action with

respect to the check described in 12A:4-303. If a bank charges against the account of a customer a check before the date stated

in the notice of postdating, the bank is liable for damages for the loss resulting

from its act. The loss may include damages for dishonor of subsequent items under 12A:4-402. d. A bank that in good faith makes payment to a holder may charge the indicated account

of its customer according to: (1) the original terms of the altered item; or (2) the terms of the completed item, even though the bank knows the item has been

completed unless the bank has notice that the completion was improper.