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Can you summarize WARC 62A.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 Revised Code of Washington’s Uniform Commercial Code, governs the relationship between a payor bank and its customer in the context of bank deposits and collections. 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. If an item is paid contrary to a binding stop-payment order or order to close the account, the burden of establishing the fact and amount of loss resulting from the payment falls on the customer. The loss may include damages for dishonor of subsequent items. The document also specifies the requirements for oral and written stop-payment orders. No specific penalties are mentioned in this document.
Whom does it apply to?
Customers and any other person authorized to draw on the account
What does it govern?
Bank deposits and collections, specifically the relationship between a payor bank and its customer
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No specific penalties are mentioned.
Jurisdiction
Washington