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Can you summarize MORS 400.4-403?
Relationship Between Payor Bank and Its Customer > Customer's right to stop payment burden of proof of loss.
Short Summary
This legal document, part of the Revised Statutes of Missouri, falls under the Uniform Commercial Code and specifically governs the relationship between a payor bank and its customer in the context of bank deposits and collections. It grants the customer or any authorized person the right to stop payment of any item drawn on the customer’s account or close the account by providing an order to the bank. The stop-payment order is effective for six months and can be renewed for additional periods. However, if the original order was oral and not confirmed in writing within fourteen calendar days, it lapses. In case of loss resulting from the 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 is on the customer. The loss may include damages for dishonor of subsequent items. The document does not mention any specific penalties for non-compliance or violation. Overall, it outlines the rights and responsibilities of customers and authorized persons in relation to stopping payments and closing accounts.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Relationship between Payor Bank and Its Customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Missouri