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Can you summarize DCCO 28:4-403?
Collection of Items: Payor Banks. > Customers right to stop payment; burden of proof of loss.
Short Summary
This legal document, part of 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 authorized person can issue an order to the bank to stop payment or close the account, providing a description of the item or account with reasonable certainty. A stop-payment order is effective for 6 months, but if the original order was oral and not confirmed in writing within 14 days, it lapses. The customer bears the burden of proving the fact and amount of loss resulting from payment contrary to a stop-payment order or account closure. The loss may include damages for dishonor of subsequent items. This document also discusses the exceptions to stopping payment, such as payment after notice of death, and clarifies that stop-payment orders can apply to any item payable by any bank. Overall, this document outlines the rights and responsibilities of customers and banks regarding stop-payment orders and account closures.
Whom does it apply to?
Customers or any person authorized to draw on the account
What does it govern?
Customer's right to stop payment; burden of proof of loss
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No specific penalties are mentioned
Jurisdiction
Washington, D.C.