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Can you summarize GACO 11-4-403?
Relationship Between Payor Bank and Its Customer > Customers right to stop payment; burden of proof of loss.
Short Summary
This legal document, found in the Georgia Code, specifically in the Commercial Code under the section ‘Bank Deposits and Collections’, pertains to 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 stop-payment order is effective for six months and can be renewed for additional periods. 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 mentions that the loss from payment of an item contrary to a stop-payment order may include damages for dishonor of subsequent items. Overall, this document outlines the rights and responsibilities of customers and payor banks in relation to stopping payment and closing accounts.
Whom does it apply to?
Customers and persons 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 penalties are mentioned
Jurisdiction
Georgia