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#12873 - 03/07/02 10:44 PM E-Signatures for Stop Payments
Anonymous
Unregistered

Can stop payments be taken electronically via bank website?

Do you have to follow-up with a written signature to document your files?

Our bank is preparing to roll-out this feature to commercial customers via the bank website. I have been unable to locate any sufficient documentation to support this act. Can anyone offer some direction?

Thanks.

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eBanking / Technology
#12874 - 03/08/02 02:34 AM Re: E-Signatures for Stop Payments
Andy_Z Offline
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Andy_Z
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We can take a stop payment over the phone and have a follow-up in written form. While E-sign allows that if all parties contract so and meet the requirements of E-Sign, that an agreement cannot be invalidated simply because it is in electronic form. This is in 101.

But, there are exceptions under 103 which include;
"(a) ...The provisions of section 101 shall not apply to a contract or other record to the extent it is governed by—...
(3) the Uniform Commercial Code, as in effect in any State, other than sections 1–107 and 1–206 and Articles 2 and 2A."

Stops are under 4.403. Based on this I would say this is an exceptions to E-signs validity. But I am far from a UCC scholar if anyone has more to add.
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AndyZ CRCM
My opinions are not necessarily my employers.
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Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12875 - 03/08/02 03:20 PM Re: E-Signatures for Stop Payments
Al Miller Offline
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Al Miller
Joined: Oct 2000
Posts: 2,416
Pleasanton CA USA
However, §1102(3) allows provisions of the code to be varied by agreement. The variation could be to allow electronic stop payment requests, and to make electronic, as well as oral, requests all valid for 6 months.

Our Deposit Account Agreement states that "Stop payment requests are valid for six months whether written, oral or electronic."

We send a confirmation of the request with instructions that the customer must notify us immediately if there is a discrepancy. We do not follow-up for a signature.
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Al Miller, CRCM
Opinions expressed are my own and not necessarily shared by my employer.

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#12876 - 03/08/02 06:19 PM Re: E-Signatures for Stop Payments
Andy_Z Offline
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Andy_Z
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Posts: 27,748
On the Net
Thanks for the addition, Al. That makes sense to me. But I didn't follow the E-Sign process and I am not sure why those specific exceptions are provided. Before I'd reverse them (and I am in favor of that) I'd try to determine the intent. Richard, did you follow the process?
_________________________
AndyZ CRCM
My opinions are not necessarily my employers.
R+R-R=R+R
Rules and Regs minus Relationships equals Resentment and Rebellion. John Maxwell

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#12877 - 08/16/02 04:34 PM Re: E-Signatures for Stop Payments
Anonymous
Unregistered

any new thoughts on this topic?

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#12878 - 01/17/06 03:56 PM Re: E-Signatures for Stop Payments
ecompliance Offline
New Poster
Joined: Jan 2006
Posts: 2
still wondering..is there anything new on this issue?

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