MARVIN MANDEL, Governor                                   203

A payor bank is liable to its customer for damages
proximately caused by the wrongful dishonor of an item.
When the dishonor occurs through mistake liability is
limited to actual damages proved. If so proximately
caused and proved damages may include damages for an
arrest or prosecution of the customer or other
consequential damages. Whether any consequential
damages are proximately caused by the wrongful dishonor
is a question of fact to be determined in each case.

4—403. Customers right to stop payment; burden of proof
of loss.

(1)    A customer may by order to his bank stop
payment of any item payable for his account but the order
must be received at such time and in such manner as to
afford the bank a reasonable opportunity to act on it
prior to any action by the bank with respect to the item
described in § 4—303.

(2)   An oral order is binding upon the bank only for
fourteen calendar days unless confirmed in writing within
that period. A written order is effective for only six
months unless renewed in writing.

(3)   The burden of establishing the fact and amount
of loss resulting from the payment of an item contrary to
a binding stop payment order is on the customer.

4—404. Bank not obligated to pay check more than six
months old.

A bank is under no obligation to a customer having a
checking account to pay a check, other than a certified
check, which is presented more than six months after its
date, but it may charge its customer's account for a
payment made thereafter in good faith.

4—405. Death or incompetence of customer.

(1)    A payor or collecting bank's authority to
accept, pay or collect an item or to account for proceeds
of its collection if otherwise effective is not rendered
ineffective by incompetence of a customer of either bank
existing at the time the item is issued or its collection
is undertaken if the bank does not know of an
adjudication of incompetence. Neither death nor
incompetence of a customer revokes such authority to
accept, pay, collect or account until the bank knows of
the fact of death or of an adjudication of incompetence
and has reasonable opportunity to act on it.

(2)    Even with knowledge a bank may for ten days
after the date of death pay or certify checks drawn on or