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Can you summarize NCGS 25-4-403?
Relationship Between Payor Bank and Its Customer. > Customer's right to stop payment; burden of proof of loss.
Short Summary
This legal document, found in the North Carolina General Statutes under the Uniform Commercial Code, specifically addresses the relationship between a payor bank and its customer. 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, but if the original order was oral and not confirmed in writing within 14 calendar days, it lapses. The customer bears the burden of proving any loss resulting from the 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. The document does not mention any specific penalties for non-compliance or violation. Overall, it establishes the rights and responsibilities of customers and authorized persons in relation to their bank 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 specific penalties are mentioned.
Jurisdiction
North Carolina