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Can you summarize CORS 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, part of the Colorado Revised Statutes under the Uniform Commercial Code, governs the customer’s right to stop payment on any item drawn on their account or close the account. The customer or any person authorized to draw on the account can issue a stop-payment order to the bank, providing a description of the item or account with reasonable certainty. The stop-payment order is effective for six months, but if the original order was oral and not confirmed in writing within 14 days, it lapses. The burden of proof of loss resulting from the payment of an item contrary to a stop-payment order or order to close an account lies with the customer. The document also clarifies that stopping payment or closing an account is a service expected by depositors, and occasional losses should be borne by the banks as a cost of doing business. The document provides additional details on the scope of stopping payment, renewal of stop-payment orders, and the rights and liabilities of the parties involved.
Whom does it apply to?
Customers and persons authorized to draw on the customer's 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
Colorado