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#2106055 - 11/04/16 05:00 PM Unsigned Stop Payments
moola741 Offline
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Joined: Dec 2003
Posts: 86
If a check has a verbal stop payment put on it and we don't get the order written before 14 days go by, is the bank required to take off the stop payment?

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#2106057 - 11/04/16 05:07 PM Re: Unsigned Stop Payments moola741
Elwood P. Dowd Offline
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Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
The model version of UCC 4-403(b):

(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.

Compare the version enacted in your state.

This one is pretty clear, the oral stop payment is no longer valid after 14 days. Generally the copy of the stop payment order mailed to the customer would recite any such language. So, if you leave it in place and bounce the check two months later you assume the risk that the customer changed his mind and actually wanted you to pay the check instead. That would be wrongful dishonor.
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