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Can you summarize 9A VTST 4-403?
BANK DEPOSITS AND COLLECTIONS > Customer's right to stop payment; burden of proof of loss
Short Summary
This legal document, part of the Vermont Statutes Uniform Commercial Code, pertains to the rights of customers or authorized persons to stop payment of any item drawn on their account or close the account. The customer or authorized person must provide an order to the bank with a clear description of the item or account, allowing the bank a reasonable opportunity to act on it. If multiple signatures are required to draw on the account, any of the authorized persons may stop payment or close the account. A stop-payment order is effective for six months, but if the original order was oral and not confirmed in writing within 14 calendar days, it lapses. The customer bears the burden of proving the fact and amount of loss resulting from payment of an item contrary to a stop-payment order or account closure. The loss may include damages for dishonor of subsequent items. No specific exemptions or penalties are mentioned in this document.
Whom does it apply to?
Customers or any person authorized to draw on the account
What does it govern?
Stop payment of items drawn on a customer's account or closing the account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Vermont