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#73269 - 04/11/03 05:22 PM stop payments on personal checks
Anonymous
Unregistered

under the UCC we must release the stop payment hold on a check if the customer does not respond in writing within the 14 day period. Currently, my bank is not removing the hold and is in fact holding the stop for 1 full year.
Question?
1. Must the bank release the hold if the stop was taken over the phone and the notice sent to the customer about the 14 day response and the customer never sends back the confirmnation?

2. Does the bank have the right to extend the the hold to an additional 6 months if the customer does not renew it?

Thank you!

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#73270 - 04/11/03 06:30 PM Re: stop payments on personal checks
PatrickG Offline
100 Club
PatrickG
Joined: Jun 2001
Posts: 165
Binghamton, NY, USA
Under the original UCC code adopted by NYS, the stop payment time period was six months. It was amended in the 70's to the current 14 day verbal, six months written form to protect the bank in case it inadvertantly paid the check after only a verbal notice. Since you can vary the UCC requirement if both parties agree, many banks have changed the account disclosure to state that a stop payment is good for six months regardless if it was done verbally, in writing, or electronically.

If you are honoring the stop payment request for a longer period than you disclose, you should probably change your disclosure to reflect your practice.

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#73271 - 04/11/03 06:37 PM Re: stop payments on personal checks
Anonymous
Unregistered

So it would be ok to have a blanket 1 yr policy if we disclosed it?

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#73272 - 04/14/03 12:11 PM Re: stop payments on personal checks
PatrickG Offline
100 Club
PatrickG
Joined: Jun 2001
Posts: 165
Binghamton, NY, USA
UCC terms can vary by agreement. If you want a one-year period, you can write that into your account agreement.

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