Vermont § 402 - § 4—402.

§ 402. § 4—402.

• Bank’s liability to customer for wrongful dishonor; time of 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 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 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. (Added 1993, No. 158 (Adj. Sess.), § 13, eff. Jan. 1, 1995.)