8.4-403 - Customer's right to stop payment; burden of proof of loss. - Virginia Statutes

§ 8.4-403. Customer's right to stop payment; burden of proof of loss.

(a) A customer or any person authorized to draw on the account if there ismore than one person may stop payment of any item drawn on the customer'saccount or close the account by an order to the bank describing the item oraccount with reasonable certainty received at a time and in a manner thataffords the bank a reasonable opportunity to act on it before any action bythe bank with respect to the item described in § 8.4-303. If the signatureof more than one person is required to draw on an account, any of thesepersons may stop payment or close the account.

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

(c) The burden of establishing the fact and amount of loss resulting from thepayment of an item contrary to a stop-payment order or order to close anaccount is on the customer. The loss from payment of an item contrary to astop-payment order may include damages for dishonor of subsequent items under§ 8.4-402.

(Code 1950, § 6-73; 1964, c. 219; 1992, c. 693.)