Stop Payment Requests by Email

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Question:

I am chairman of our Compliance Committee and a question was raised by our deposit area. Our deposit area accepts stop payment requests via e-mail and through our PC Banking package. Their question is whether this constitutes a signature within the 14 days established by UCC 4-403 or is it a verbal arrangement that requires a signature. My response was that a signature would still be required within the 14 days on any stop payment accepted by these methods. Would you concur?

Answer:

To be actually valid a signature would be required (at least according to the Texas Business and Commerce Code. Your State may vary). E-sign would allow a digital signature to be accepted in one or more medias if you and the customer have agreed to this in the past. And while a signature may be required, your policy can be less stringent.

First published on BankersOnline.com 2/5/01