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Can you summarize KYRS 355.4-403?
Bank Deposits and Collections > Customer's right to stop payment -- Burden of proof of loss.
Short Summary
This legal document, part of the Kentucky Revised Statutes, falls under the Commerce and Trade section and specifically pertains to the Uniform Commercial Code. It governs the rights of customers or any person authorized to draw on the account regarding stopping payment of items drawn on the customer’s account or closing the account. The document states that a customer can stop payment or close the account by providing an order to the bank with a reasonable description of the item or account. The stop-payment order is effective for six months and can be renewed for additional six-month periods. The burden of proving loss resulting from payment 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 contrary to a stop-payment order may include damages for dishonor of subsequent items. The document was last amended in 2006.
Whom does it apply to?
Customers or any person authorized to draw on the account
What does it govern?
Bank Deposits and Collections
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Kentucky