§ 25-4-403. Customer's right to stop payment; burden of proof of loss. - North Carolina Statutes

§25‑4‑403.  Customer's right to stop payment; burden of proof ofloss.

(a)        A customer or anyperson authorized to draw on the account if there is more than one person maystop payment of any item drawn on the customer's account or close the accountby an order to the bank describing the item or account with reasonablecertainty received at a time and in a manner that affords the bank a reasonableopportunity to act on it before any action by the bank with respect to the itemdescribed in G.S. 25‑4‑303. If the signature of more than oneperson is required to draw on an account, any of these persons may stop paymentor close the account.

(b)        A stop‑paymentorder is effective for six months, but it lapses after 14 calendar days if theoriginal order was oral and was not confirmed in writing within that period. Astop‑payment order may be renewed for additional six‑month periodsby a writing given to the bank within a period during which the stop‑paymentorder is effective.

(c)        The burden ofestablishing the fact and amount of loss resulting from the payment of an itemcontrary to a stop‑payment order or order to close an account is on thecustomer. The loss from payment of an item contrary to a stop‑paymentorder may include damages for dishonor of subsequent items under G.S. 25‑4‑402.(1929, c. 341, s. 1; 1965, c. 700, s. 1; 1995, c. 232, s. 2.)