Stop Payment Orders In A Nutshell

LexisNexis (November 20, 2017, 1:57 PM EST) -- In our prior story, we considered a Fourth Circuit case on the issue of whether a bank customer seeking to avoid problematic debits can give instructions using the term "account freeze"  rather "stop payment."  In okaying the customer's phrase, the court employed a "functional" rather than a formal test.  Let's now stand back a bit and summarize the rules governing stop payment orders under the UCC.

First, as the Fourth Circuit recognized, UCC 4-403(a) makes it clear that the customer "or any person authorized to draw...
To view the full article, register now.