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Can you summarize MNST 336.4-403?
UNIFORM COMMERCIAL CODE > CUSTOMER'S RIGHT TO STOP PAYMENT; BURDEN OF PROOF OF LOSS.
Short Summary
This legal document, part of the Minnesota Statutes under the Uniform Commercial Code, governs the right of a customer or any authorized person to stop payment of any 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 clear description of the item or account. If multiple signatures are 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 14 calendar days if the original order was oral and not confirmed in a record. The customer bears the burden of proving the fact and amount of loss resulting from 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. No specific exemptions or 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 penalties are mentioned.
Jurisdiction
Minnesota