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Can you summarize 11 MERS Section 4-403?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > Customer's right to stop payment; burden of proof of loss
Short Summary
This provision, found in the Maine Revised Statutes under the Uniform Commercial Code, pertains to the rights of customers and authorized persons to stop payment of items drawn on a customer’s account or close the account. The customer or authorized person may issue an order to the bank to stop payment or close the account, providing a description of the item or account with reasonable certainty. The stop-payment order is effective for 6 months, but lapses after 14 calendar days if the original order was oral and not confirmed in writing. The customer bears the burden of proving the fact and amount of loss resulting from payment contrary to a stop-payment order or order to close an account. The loss may include damages for dishonor of subsequent items. This provision does not specify any penalties for non-compliance.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Stop payment of items drawn on a customer's account and the burden of proof of loss resulting from payment contrary to a stop-payment order
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Maine