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Can you summarize NYCL UCC 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 governs the customer’s right to stop payment and the burden of proof of loss in the context of bank deposits and collections. It allows customers to order their bank to stop payment on any item payable for their account, provided the order is received in a timely manner. Remitters or payees of cashier’s checks, certified checks, or teller’s checks can also order the obligated bank to stop payment after a certain period. The stop payment order requires a written order describing the item and an affidavit stating that the check was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown or untraceable person. Oral orders are binding for fourteen days, while written orders are effective for six months unless renewed. In case of a payment made contrary to a binding stop payment order, the burden of proving the fact and amount of loss falls on the customer, remitter, or payee.
Whom does it apply to?
Customers, remitters, and payees of checks
What does it govern?
Customer's right to stop payment and burden of proof of loss
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
New York