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Can you summarize 55-4-403 NMSA?
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 New Mexico Statutes Annotated 1978, specifically the Uniform Commercial Code, Bank Deposits and Collections, governs the relationship between a payor bank and its customer. It grants the customer or any authorized person the right to 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, but if the original order was oral and not confirmed in a record within 14 days, it lapses. The burden of proof of loss resulting from payment 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 official comments and annotations for further clarification and interpretation.
Whom does it apply to?
Customers and persons authorized to draw on an 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 penalties are mentioned
Jurisdiction
New Mexico