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This entry was published on 2014-09-22
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Customer's Right to Stop Payment; Burden of Proof of Loss
Uniform Commercial Code (UCC) CHAPTER 38, ARTICLE 4, PART 4
Section 4--403. Customer's Right to Stop Payment; Burden of Proof of


(1) A customer may by order to his bank stop payment of any item
payable for his account but the order must be received at such time and
in such manner as to afford the bank a reasonable opportunity to act on
it prior to any action by the bank with respect to the item described in
Section 4--303.

(2) A remitter or payee of a cashier's check or certified check may by
order to the obligated bank stop payment of such a check, and a remitter
or payee of a teller's check may order the obligated bank to order the
payor bank to stop payment of such a check, at any time after ninety
days from the date of issuance of either a cashier's check or teller's
check, and date of certification of a certified check. The stop payment
is effective if either the remitter or payee delivers to the obligated
bank at a time and in a manner affording a reasonable opportunity to act
before any of the actions described in Section 4--303 (1) are taken: (i)
a written order to stop payment, which shall describe the item with
reasonable certainty, and (ii) an affidavit of the remitter or payee
containing an averment that the check was destroyed, its whereabouts
cannot be determined, or it is in the wrongful possession of an unknown
person or a person that cannot be found or is not amenable to service of

(3) An oral order is binding upon the bank only for fourteen calendar
days unless confirmed in writing within that period. A written order is
effective for only six months unless renewed in writing.

(4) The burden of establishing the fact and amount of loss resulting
from the payment of an item contrary to a binding stop payment order is
on the customer, remitter or payee.