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Can you summarize AZRS 47-4403?
Customer's right to stop payment; burden of proof of loss
Short Summary
This provision, found in the Arizona Revised Statutes under the Uniform Commercial Code, grants customers or authorized persons the right to stop payment of any item drawn on their account or close the account. The order to stop payment or close the account must be provided to the bank in a timely manner, 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 remains effective for six months, but if the original order was oral and not confirmed in writing within fourteen calendar days, it lapses. The customer bears the burden of proving any loss resulting from payment of an item contrary to a stop-payment order or account closure. This loss may include damages for dishonor of subsequent items. The provision does not specify any penalties for non-compliance.
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 closure of the account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Arizona