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Can you summarize 12A OKST 4-403?
Relationship Between Payor Bank and Its Customer > Customer's Right to Stop Payment - Burden of Proof of Loss
Short Summary
This legal document, part of the Oklahoma Statutes Uniform Commercial Code, specifically addresses the customer’s right to stop payment on any item drawn on their account or close the account. The customer or any person authorized to draw on the account can issue a stop-payment order to the bank, describing the item or account with reasonable certainty. The order must be received by the bank in a timely manner to allow the bank to act on it before taking any action on the item. If more than one person’s signature is required to draw on the account, any of these persons can issue a stop-payment order or close the account. The stop-payment order is effective for six months, but if the original order was oral and not confirmed in writing within 14 days, it lapses. The burden of proving the fact and amount of loss resulting from payment of an item contrary to a stop-payment order or order to close an account lies with the customer. The loss may include damages for dishonor of subsequent items. The document also provides additional commentary and explanations regarding the customer’s right to stop payment and the bank’s obligations and liabilities in such situations.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Customer's right to stop payment and burden of proof of loss
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Oklahoma