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#2258596 - 08/24/21 04:01 PM Signature required on Stop Pay?
Susielou Offline
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Joined: Aug 2005
Posts: 321
Midwest
Is it a regulatory requirement that a customer must sign a stop payment? We are wanting to make sure we follow regulations but at the same time, trying to streamline procedures. If a customer calls in, are we required to have them also put it in writing to make it valid for six months? If a customer goes through online banking for a stop payment, is it a requirement to have them put that in writing?

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#2258597 - 08/24/21 04:12 PM Re: Signature required on Stop Pay? Susielou
osucpa Offline
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Joined: May 2011
Posts: 1,395
A stop payment order is not a regulatory requirement issue, it is a contract law issue under UCC 4-403. I believe it says the stop payment order must be confirmed by the customer. We do not require a customer signature for stop payment orders.

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#2258599 - 08/24/21 04:19 PM Re: Signature required on Stop Pay? Susielou
simplycomplying Offline
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Joined: May 2014
Posts: 10
(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 a record within that period. A stop-payment order may be renewed for additional six-month periods by a record given to the bank within a period during which the stop-payment order is effective.

We have always required a signature. UCC 4-403 states confirmed in a record. Is that referring to just a confirmation of the customer's ID ?

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#2258601 - 08/24/21 05:06 PM Re: Signature required on Stop Pay? Susielou
Susielou Offline
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Joined: Aug 2005
Posts: 321
Midwest
I would be interested in the definition of a "record".

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#2258609 - 08/24/21 06:01 PM Re: Signature required on Stop Pay? Susielou
John Burnett Online
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John Burnett
Joined: Oct 2000
Posts: 39,289
Cape Cod
From the UCC, Section 1-201(b)(31) "Information that is inscribed on a tangible medium or that is stored in an electronic or other medium and is retrievable in perceivable form."
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