§ 4-4-403 — Customer's right to stop payment - burden of proof of loss

Colorado § 4-4-403

• Jurisdiction: Colorado
• Title 04: Uniform
• Art.: Bank Deposits and Collections

Text

(a) A
customer or any person authorized to draw on the account if there is more than one
person may stop payment of any item drawn on the customer's account or close the
account by an order to the bank describing the item or account with reasonable
certainty received at a time and in a manner that affords the bank a reasonable
opportunity to act on it before any action by the bank with respect to the item
described in section 4-4-303. If the signature of more than one person is required to
draw on an account, any of these persons may stop payment or close the account.

(b) A stop-payment order is effective for six months, but it lapses after
fourteen calendar days if the original order was oral and was not confirmed in
writing within that period. A stop-payment order may be renewed for additional six-month periods by a writing given to the bank within a period during which the stop-payment order is effective.

(c) The burden of establishing 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 is
on the customer. The loss from payment of an item contrary to a stop-payment
order may include damages for dishonor of subsequent items under section 4-4-402.

Legislative History

Source: L. 94: Entire article amended with relocations, p. 900, � 2, effective January 1, 1995.