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Can you summarize IACO 554.4403?
UNIFORM COMMERCIAL CODE > Customers right to stop payment burden of proof of loss.
Short Summary
This legal document, part of the Iowa Code’s Uniform Commercial Code, governs the right of a customer or any authorized person to stop payment of an item drawn on the customer’s account or close the account. The customer or authorized person must provide an order to the bank with a reasonable description of the item or account, giving the bank a reasonable opportunity to act on it. If more than one person’s signature is required to draw on the account, any of these persons may stop payment or close the account. A stop-payment order is effective for six months, but lapses after fourteen calendar days if the original order was oral and not confirmed in writing. The order can be renewed for additional six-month periods. The burden of proving the fact and amount of loss resulting from payment of an item contrary to a stop-payment order or account closure is on the customer. The loss may include damages for dishonor of subsequent items. No specific penalties are mentioned in this document.
Whom does it apply to?
Customers or any person authorized to draw on the account
What does it govern?
Stop payment of items drawn on a customer's account or closing the account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Iowa