§ 4-403 — Customer's Right to Stop Payment; Burden of Proof of Loss

New York § 4-403

• Jurisdiction: New York
• Law UCC: Uniform Commercial Code
• Part 4: Relationship Between Payor Bank and Its Customer
• Art. 4: Bank Deposits and Collections

Text

Section 4--403. Customer's Right to Stop Payment; Burden of Proof of\n Loss.\n (1) A customer may by order to his bank stop payment of any item\npayable for his account but the order must be received at such time and\nin such manner as to afford the bank a reasonable opportunity to act on\nit prior to any action by the bank with respect to the item described in\nSection 4--303.\n (2) A remitter or payee of a cashier's check or certified check may by\norder to the obligated bank stop payment of such a check, and a remitter\nor payee of a teller's check may order the obligated bank to order the\npayor bank to stop payment of such a check, at any time after ninety\ndays from the date of issuance of either a cashier's check or teller's\ncheck, and date of certification of a certified check. The stop payment\nis effective if either the remitter or payee delivers to the obligated\nbank at a time and in a manner affording a reasonable opportunity to act\nbefore any of the actions described in Section 4--303 (1) are taken: (i)\na written order to stop payment, which shall describe the item with\nreasonable certainty, and (ii) an affidavit of the remitter or payee\ncontaining an averment that the check was destroyed, its whereabouts\ncannot be determined, or it is in the wrongful possession of an unknown\nperson or a person that cannot be found or is not amenable to service of\nprocess.\n (3) An oral order is binding upon the bank only for fourteen calendar\ndays unless confirmed in writing within that period. A written order is\neffective for only six months unless renewed in writing.\n (4) The burden of establishing the fact and amount of loss resulting\nfrom the payment of an item contrary to a binding stop payment order is\non the customer, remitter or payee.\n