§490:4-403  Customer's right to stop
payment; burden of proof of loss.  (a)  A customer or any person authorized
to draw on the account if there is more than one person may stop payment of any
item drawn on the customer's account or close the account by an order to the
bank describing the item or account with reasonable certainty received at a
time and in a manner that affords the bank a reasonable opportunity to act on
it before any action by the bank with respect to the item described in section
490:4-303.  If the signature of more than one person is required to draw on an
account, any of these persons may stop payment or close the account.



(b)  A stop-payment order is effective for six
months, but it lapses after fourteen calendar days if the original order was
oral and was not confirmed in writing within that period.  A stop-payment order
may be renewed for additional six-month periods by a writing given to the bank
within a period during which the stop-payment order is effective.



(c)  The burden of establishing the fact and
amount of loss resulting from the payment of an item contrary to a stop-payment
order or order to close an account is on the customer.  The loss from payment
of an item contrary to a stop-payment order may include damages for dishonor of
subsequent items under section 490:4-402. [L 1965, c 208, §4-403; HRS
§490:4-403; am L 1991, c 118, pt of §4]