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Can you summarize ARCO 4-4-403?
Relationship Between Payor Bank and Its Customer > Customer's right to stop payment Burden of proof of loss.
Short Summary
This legal document, found in the Arkansas Code under the Business and Commercial Law section, specifically in the Uniform Commercial Code related to Bank Deposits and Collections, addresses the customer’s right to stop payment and the burden of proof of loss. According to this document, a customer or any authorized person 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 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 may include damages for dishonor of subsequent items. The document also references relevant case notes and research references for further context.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Customer's right to stop payment and burden of proof of loss
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Arkansas