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Can you summarize OHRC Section 1304.32?
Bank Deposits And Collections > Customer's right to stop payment - burden of proof of loss - UCC 4-403.
Short Summary
This legal provision, governed by UCC 4-403 of the Ohio Revised Code, grants customers or authorized persons the right to stop payment of any item drawn on their account or close the account. The customer must provide an order to the bank with a clear description of the item or account, 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 can renew the stop payment order for additional six-month periods by providing a record to the bank. In case an item is paid contrary to a stop payment order or order to close an account, the burden of proving the fact and amount of loss resulting from the payment lies on the customer. The loss may include damages for dishonor of subsequent items. The legal provision does not specify any specific penalties for non-compliance or violation.
Whom does it apply to?
Customers or any person authorized to draw on the account
What does it govern?
Customer's right to stop payment
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Ohio