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Can you summarize RIGL 6A-4-403?
Bank Deposits and Collections > Customer's right to stop payment Burden of proof of loss.
Short Summary
This section of the State of Rhode Island General Laws, specifically the Uniform Commercial Code, Bank Deposits and Collections, governs the relationship between a payor bank and its customer. It outlines the customer’s right to stop payment of any item drawn on their account or close the account by providing an order to the bank. The stop-payment order is effective for six months and can be renewed for additional six-month periods. If an item is paid contrary to a stop-payment order, the burden of establishing the fact and amount of loss resulting from the payment is on the customer. The loss may include damages for dishonor of subsequent items. This section does not mention any specific exemptions or penalties.
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 penalties are mentioned.
Jurisdiction
Rhode Island