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Can you summarize LARS 10.4-403?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMERS > Customer's right to stop payment; burden of proof of loss
Short Summary
This provision, found in the Louisiana Revised Statutes, governs the relationship between a payor bank and its customers. It grants customers the right to stop payment of any item drawn on their account or close the account by providing an order to the bank. The order must describe the item or account with reasonable certainty and be received by the bank in a timely manner. If multiple signatures are required to draw on the account, any of the authorized persons may stop payment or close the account. A stop-payment order is effective for six months, but lapses after 14 calendar days if the original order was oral and not confirmed in writing. The customer bears 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. The loss may include damages for dishonor of subsequent items. This provision does not specify any penalties for non-compliance or violation.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Relationship between payor bank and its customers
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Louisiana