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Can you summarize 4403.?
Relationships Between Payor Bank And Its Customer > Customer's Right to Stop Payment; Burden of Proof of Loss.
Short Summary
This legal document governs the relationships between a payor bank and its customer in the context of bank deposits and collections. It grants the customer or any authorized person the right to stop payment of any item payable for or drawn against the customer’s account. However, the bank can disregard the stop payment order unless it is in writing, signed by the customer or authorized person, describes the item with certainty, and is received by the bank within a reasonable time before certain events occur. The customer can renew the stop payment order in writing within six months of its receipt. If the bank pays an item contrary to a binding stop payment order, it is liable to the customer for the actual loss incurred, up to the amount of the item, unless the bank is guilty of negligence. The burden of proving the fact and amount of loss resulting from the payment of an item contrary to a stop payment order lies with the customer.
Whom does it apply to?
Customers and authorized persons
What does it govern?
Bank Deposits and Collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank is liable to its customer for the actual loss incurred by him resulting from the payment of an item contrary to a binding stop payment order, not exceeding the amount of the item unless the bank is guilty of negligence.
Jurisdiction
Guam