Signature required on Stop Pay?

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?

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.

(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 ?

I would be interested in the definition of a "record".

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."