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Can you summarize TNCO 47-4-403?
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 Tennessee Code, specifically addresses the customer’s right to stop payment and the burden of proof of loss in the relationship between a payor bank and its customer. According to the document, a customer or any authorized person can 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, but if the original order was oral, it lapses after fourteen days unless confirmed in writing. The burden of proving the fact and amount 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 loss may include damages for dishonor of subsequent items. The document also provides some insights from prior Tennessee law and decisions related to stopping payment and payment after a stop order. Overall, this document establishes the rights and responsibilities of customers and banks regarding stopping payment and the burden of proof in case of loss.
Whom does it apply to?
Customers and persons authorized to draw on the account
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
Tennessee