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Can you summarize FLCL 674.403?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER (ss. 674.401-674.407) > Customers right to stop payment; burden of proof of loss.
Short Summary
This legal document, found in the Florida Statutes under the Uniform Commercial Code, specifically addresses the relationship between a customer and a payor bank in the context of bank deposits and collections. 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 a written order to the bank. The stop-payment order is effective for 6 months and can be renewed for additional 6-month periods. If the bank wrongfully pays an item contrary to a valid stop-payment order or order to close an account, the bank may be liable to the customer for the actual loss incurred. The burden of proving 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 lies with the customer. The loss may include damages for dishonor of subsequent items. This document supersedes a previous statute and does not mention any exemptions or penalties.
Whom does it apply to?
Customers and persons authorized to draw on the customer's account
What does it govern?
Relationship between a customer and a payor bank in the context of bank deposits and collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
The bank may be liable to the customer for the actual loss incurred by the customer resulting from the wrongful payment of an item contrary to a valid and binding stop-payment order or order to close an account.
Jurisdiction
Florida