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Can you summarize 6 DECO 4-403?
Relationship Between Payor Bank and its Customer > Customers right to stop payment; burden of proof of loss.
Short Summary
This legal document, part of the Delaware Code, specifically the Uniform Commercial Code, pertains to the relationship between a payor bank and its customer regarding bank deposits and collections. 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 and can be renewed for additional periods. If an item is paid contrary to a stop-payment order, the burden of establishing the fact and amount of loss resulting from the payment is on the customer. The loss may include damages for dishonor of subsequent items. The document does not mention any specific exemptions or penalties.
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 penalties are mentioned
Jurisdiction
Delaware