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Can you summarize Com Code CACL 4403?
Relationship Between Payor Bank and Its Customer [4401. - 4407.] >
Short Summary
This legal document, part of the California Commercial Code, specifically addresses 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 order must describe the item or account with reasonable certainty and be received by the bank in a timely manner. 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 any loss resulting from payment of an item contrary to a stop-payment order or order to close an account. The loss may include damages for dishonor of subsequent items. This document was amended in 1992 and became effective on January 1, 1993.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Relationship Between Payor Bank and Its Customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
California