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Can you summarize MSCO 75-4-403?
Relationship Between Payor Bank and Its Customer. > Customers right to stop payment; burden of proof of loss.
Short Summary
This legal document, governed by the Mississippi Code 1972, specifically falls under the Regulation of Trade, Commerce and Investments and the Uniform Commercial CodeBank Deposits and Collections. It outlines the customer’s right to stop payment on 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 in a timely manner to allow the bank to act on it. If more than one person is 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 it lapses after fourteen calendar days if the original order was oral and not confirmed in writing. The burden of proof for 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. The document also provides historical information, cross-references, and judicial decisions related to the topic.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Customers right to stop payment; burden of proof of loss
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No penalties are mentioned
Jurisdiction
Mississippi