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Can you summarize SCCL 36-4-403?
Relationship Between Payor Bank and Its Customer > Customer's right to stop payment; burden of proof of loss.
Short Summary
This legal document, part of the South Carolina Code of Laws, specifically the Commercial Code - Bank Deposits and Collections, governs 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 and can be renewed for additional periods. The burden of proof of loss resulting from the payment of an item contrary to a stop-payment order or order to close an account lies with the customer. The document also mentions that the loss from payment contrary to a stop-payment order may include damages for dishonor of subsequent items. No specific penalties are mentioned in this document.
Whom does it apply to?
Customers and persons authorized to draw on the account
What does it govern?
Customer's right to stop payment; burden of proof of loss
What are exemptions?
No exemptions are mentioned
What are the Penalties?
No specific penalties are mentioned
Jurisdiction
South Carolina