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Can you summarize MICL 440.4403?
PART 4 RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER (440.4401...440.4407) > Customer's right to stop payment; lapse and renewal; burden of proof of loss.
Short Summary
This section of the Michigan Compiled Laws, specifically under the Uniform Commercial Code, governs the rights of customers to stop payment of any item drawn on their account or close the account. The customer or any person authorized to draw on the account can issue an order to the bank to stop payment or close the account, provided that the bank is given a reasonable opportunity to act on it before taking any action on the item. If more than one person’s signature is required to draw on the account, any of these persons can 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 not confirmed in a record within that period. The customer can renew the stop-payment order for additional 6-month periods by providing a record to the bank while the original order is still effective. In case of payment of an item contrary to a stop-payment order or order to close an account, the burden of establishing the fact and amount of loss resulting from the payment is on the customer. The loss may include damages for dishonor of subsequent items. No specific penalties are mentioned in this section.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Stop payment of items drawn on a customer's account, closure of accounts, burden of proof of loss
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Michigan