N.Y. Uniform Commercial Code 4-403 – Customer's Right to Stop Payment; Burden of Proof of Loss
Section 4–403. Customer's Right to Stop Payment; Burden of Proof of
Terms Used In N.Y. Uniform Commercial Code 4-403
- Account: means any account with a bank and includes a
checking, time, interest or savings account;
(b) "Afternoon" means the period of a day between noon and
midnight;
(c) "Banking day" means that part of any day on which a bank is
open to the public for carrying on substantially all of its
banking functions;
(d) "Clearing house" means any association of banks or other
payors regularly clearing items;
(e) "Customer" means any person having an account with a bank or
for whom a bank has agreed to collect items and includes a
bank carrying an account with another bank;
(f) "Documentary draft" means any negotiable or non-negotiable
draft with accompanying documents, securities or other papers
to be delivered against honor of the draft;
(g) "Item" means any instrument for the payment of money even
though it is not negotiable but does not include money;
(h) "Midnight deadline" with respect to a bank is midnight on its
next banking day following the banking day on which it
receives the relevant item or notice or from which the time
for taking action commences to run, whichever is later;
(i) "Obligated bank" means the acceptor of a certified check, the
issuer of a cashier's check, or the drawer of a teller's
check;
(j) "Properly payable" includes the availability of funds for
payment at the time of decision to pay or dishonor;
(k) "Remitter" means the buyer from the obligated bank of a
cashier's check or a teller's check, and the drawer of a
certified check;
(l) "Settle" means to pay in cash, by clearing house settlement,
in a charge or credit or by remittance, or otherwise as
instructed. See N.Y. Uniform Commercial Code 4-104 - Affidavit: A written statement of facts confirmed by the oath of the party making it, before a notary or officer having authority to administer oaths.
- Service of process: The service of writs or summonses to the appropriate party.
Loss.
(1) A customer may by order to his bank stop payment of any item payable for his account but the order must be received at such time and in such manner as to afford the bank a reasonable opportunity to act on it prior to any action by the bank with respect to the item described in Section 4–303.
(2) A remitter or payee of a cashier's check or certified check may by order to the obligated bank stop payment of such a check, and a remitter or payee of a teller's check may order the obligated bank to order the payor bank to stop payment of such a check, at any time after ninety days from the date of issuance of either a cashier's check or teller's check, and date of certification of a certified check. The stop payment is effective if either the remitter or payee delivers to the obligated bank at a time and in a manner affording a reasonable opportunity to act before any of the actions described in Section 4–303 (1) are taken: (i) a written order to stop payment, which shall describe the item with reasonable certainty, and (ii) an affidavit of the remitter or payee containing an averment that the check was destroyed, its whereabouts cannot be determined, or it is in the wrongful possession of an unknown person or a person that cannot be found or is not amenable to service of process.
(3) An oral order is binding upon the bank only for fourteen calendar days unless confirmed in writing within that period. A written order is effective for only six months unless renewed in writing.
(4) The burden of establishing the fact and amount of loss resulting from the payment of an item contrary to a binding stop payment order is on the customer, remitter or payee.