Ask Reggi Your Question Now
Can you summarize 42a CTGS Article 4, Section 403?
Bank Deposits and Collections - Secs. 42a-4-101 to 42a-4-504 > Customer's right to stop payment. Burden of proof of loss.
Short Summary
This legal document, found in the General Statutes of Connecticut under the Uniform Commercial Code - Articles 1 to 10, specifically in the section on Bank Deposits and Collections, addresses the customer’s right to stop payment and the burden of proof of loss. According to the document, a customer or any person authorized to draw on the account can stop payment of any item drawn on the customer’s account or close the account by providing an order to the bank. The stop-payment order is effective for six months and can be renewed for additional six-month periods. However, the burden of establishing the fact and amount of loss resulting from the payment of an item contrary to a stop-payment order or order to close an account falls on the customer. The loss from payment of an item contrary to a stop-payment order may include damages for dishonor of subsequent items. The document does not mention any specific penalties for non-compliance or violation of its provisions.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Customer's right to stop payment. Burden of proof of loss.
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Connecticut