§ 26-1-4-403 — Customer's right to stop payment; burden of proof of loss

Indiana § 26-1-4-403

• Jurisdiction: Indiana
• Title 26: COMMERCIAL LAW
• Art. 1: UNIFORM COMMERCIAL CODE
• Ch. 4: Bank Deposits and Collections

Text

(a) A customer or any person authorized to
draw on the account if there is more than one (1) 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 IC 26-1-4-303. If the signature of
more than one (1) 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 (6) months, but it
lapses after fourteen (14) calendar days if the original order was oral
and was not confirmed in a record within that period. A stop-payment
order may be renewed for additional six (6) month periods by a record
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 IC 26-1-4-402.
Formerly: Acts 1963, c.317, s.4-403. As amended by
P.L.152-1986, SEC.225; P.L.222-1993, SEC.38; P.L.135-2009,
SEC.20.