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California Commercial Code Section 4403

Legal Research Home > California Laws > Commercial Code > California Commercial Code Section 4403

4403.  (a) A customer or any person authorized to draw on the
account if there is more than one 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 Section 4303. If the signature of more than
one 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 months, but it
lapses after 14 calendar days if the original order was oral and was
not confirmed in writing within that period. A stop-payment order may
be renewed for additional six-month periods by a writing 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 Section 4402.

Last modified: February 22, 2013