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Can you summarize HIRS 490:4-403?
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 Hawaii Revised Statutes, specifically falls under the Uniform Commercial Code governing 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 for establishing loss resulting from payment contrary to a stop-payment order or account closure lies with the customer. The loss may include damages for dishonor of subsequent items. This document does not mention any specific exemptions or penalties.
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
Hawaii