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Can you summarize MDCM Com. Law Section 4-403?
Short Summary
This provision, found in the Code of Maryland, Commercial Law, Title 4, SubTitle 4, governs the ability of any person authorized to draw on a customer’s account to stop payment of any item drawn on the account or close the account. If there is more than one person authorized to draw on the account, any of these persons may stop payment or close the account. A stop-payment order is effective for 6 months, but it lapses after 14 calendar days if the original order was oral and was not confirmed in writing within that period. The customer bears the burden of establishing 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 from payment of an item contrary to a stop-payment order may include damages for dishonor of subsequent items under 4-402.
Whom does it apply to?
Any person authorized to draw on the account
What does it govern?
Stopping payment of items drawn on a customer's account and closing the account
What are exemptions?
No exemptions are mentioned
What are the Penalties?
The burden of establishing 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 is on the customer. The loss from payment of an item contrary to a stop-payment order may include damages for dishonor of subsequent items under 4-402.
Jurisdiction
Maryland