Vermont § 401 - § 4—401.

§ 401. § 4—401.

• When bank may charge customer’s account (a) A bank may charge against the account of a customer an item that is properly payable
  from the 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
  section 4—403(b) of this title 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 section 4—303 of this title. 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
  section 4—402 of this title. (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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)