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Can you summarize NERS Uniform Commercial Code 4-403?
Customer's right to stop payment; burden of proof of loss.
Short Summary
This provision, found in the Nebraska Revised Statutes under the Nebraska Uniform Commercial Code, grants customers or authorized persons the right to stop payment of any item drawn on their account or close the account. The order to stop payment or close the account must be provided to the bank in a timely manner, allowing the bank a reasonable opportunity to act on it. If multiple signatures are required to draw on the account, any of the authorized persons may stop payment or close the account. A stop-payment order remains effective for six months, but if the original order was oral and not confirmed in a record within fourteen calendar days, it lapses. The customer bears the burden of proving any loss resulting from payment of an item contrary to a stop-payment order or order to close the account. This provision also mentions that the loss may include damages for dishonor of subsequent items. No specific penalties are mentioned in this provision.
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 specific penalties are mentioned.
Jurisdiction
Nebraska