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Can you summarize WYST 34.1-4-403?
RELATIONSHIP BETWEEN PAYOR BANK AND ITS CUSTOMER > Customer's right to stop payment; burden of proof of loss
Short Summary
This provision, found in the Wyoming Statutes under the Uniform Commercial Code, governs a customer’s right to stop payment of any item drawn on their account or close the account. The customer or any authorized person may issue an order to the bank to stop payment or close the account, provided that the bank is given a reasonable opportunity to act on it before taking any action on the item. 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 is effective for six months, but if the original order was oral and not confirmed in writing within fourteen calendar days, it lapses. The customer bears the burden of proving the fact and amount of loss resulting from payment of an item contrary to a stop-payment order or order to close the account. Such loss may include damages for dishonor of subsequent items. No specific penalties are mentioned in this provision.
Whom does it apply to?
Customers or persons authorized to draw on the account
What does it govern?
Stop payment of items drawn on a customer's account or closing the account
What are exemptions?
No exemptions are mentioned.
What are the Penalties?
No penalties are mentioned.
Jurisdiction
Wyoming