70A-4-403 - Customer's right to stop-payment -- Burden of proof of loss. - Utah Statutes

70A-4-403. Customer's right to stop-payment -- Burden of proof of loss.
(1) A customer or any person authorized to draw on the account if there is more than oneperson, may stop payment of any item drawn on the customer's account or close the account byan order to the bank describing the item or account with reasonable certainty received at a timeand in a manner that affords the bank a reasonable opportunity to act on it before any action bythe bank with respect to the item described in Section 70A-4-303. If the signature of more thanone person is required to draw on an account, any of these persons may stop payment or close theaccount.
(2) A stop-payment order is effective for six months, but it lapses after 14 calendar daysif the original order was oral and was not confirmed in writing within that period. Astop-payment order may be renewed for additional six-month periods by a writing given to thebank within a period during which the stop-payment order is effective.
(3) The burden of establishing the fact and amount of loss resulting from the payment ofan item contrary to a stop-payment order or order to close account is on the customer. The lossfrom payment of an item contrary to a stop-payment order may include damages for dishonor ofsubsequent items and Section 70A-4-402.

Amended by Chapter 237, 1993 General Session