Florida Statutes

Fla. Stat. § 674.403 (2025)

Customer’s right to stop payment; burden of proof of loss.

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674.403 Customer’s right to stop payment; burden of proof of loss.—

(1) 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 a written order to the bank describing the item or account with certainty received by an officer of the bank during a banking day and 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 s. 674.303. 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.

(2) A stop-payment order is effective for 6 months. A stop-payment order may be renewed for additional 6-month periods by a writing given to the bank within a period during which the stop-payment order is effective.

(3) The bank may be liable to its customer for the actual loss incurred by the customer resulting from the wrongful payment of an item contrary to a valid and binding stop-payment order or order to close an account. 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 s. 674.402.

History.—Art. 10, s. 1, ch. 65-254; s. 40, ch. 92-82.

Note.—s. 4-403, U.C.C.; supersedes s. 659.32.

Notes of Decisions

Cited in 11 cases (1 in the last 5 years), 1980–2023 · leading case: Arnold, Matheny, Pa v. First Am. Holdings, 982 So. 2d 628 (Fla. 2008).

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Arnold, Matheny, Pa v. First Am. Holdings, 982 So. 2d 628 (Fla. 2008). · cites it 5× “See § 674.403(1), Fla. Stat. (stating that a stop payment order must be "received by an *639 officer of the bank during a banking day and at a time and in a manner that affords the bank a reasonable opportunity to act on it").”

Capital Bank v. Schuler, 421 So. 2d 633 (Fla. 3d DCA 1982). · cites it 9× “It says that, as a matter of law, it could rightfully make payment despite the stop-payment order since the order failed to describe the check with certainty as required by Section 674.403(1), Florida Statutes (1977), and was, therefore, neither valid nor binding.”

Se. First Nat. Bk v. Atl. Telec, 389 So. 2d 1032 (Fla. 5th DCA 1980). · cites it 5× “[2] § 674.403(1), Fla. Stat. (1979), provides: "A customer .”

Brubaker v. Jensen (In Re Brubaker), 443 B.R. 176 (M.D. Fla. 2011). · cites it 2× “Fla. Stat. § 674.403 (1); Arnold, Matheny, & Eagan, 982 So.”

Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “See § 674.403(1) (regarding a customer's right to stop payment).”

Best v. Dreyfus Liquid Assets, Inc., 521 A.2d 352 (N.J. Super. Ct. App. Div. 1987). “1982) (strictly construing Fla.Stat. § 674.403(1) (1977) of the Florida Commercial Code which provides that an effective order must describe “with certainty the item on which payment is to be stopped.”

SouthTrust Bank v. PartsBase.com, Inc., 875 So. 2d 17 (Fla. 4th DCA 2004). · cites it 10× “(drawer) filed a one count complaint against SouthTrust Bank (Bank) under section 674.403, Florida Statutes (2000) for damages arising from the payment of a check after the drawer had delivered a stop-payment order.”

United States v. Williams (M.D. Fla. 2023). · cites it 2× “1931); see also Fla. Stat. § 674.403 (1). Where a depositor can withdraw the full amounts from his bank accounts, those bank accounts constitute property or rights to property.”

DYNAMITE ENTERPRIESE, INC. v. Eagle Nat'l Bank of Miami, 517 So. 2d 112 (Fla. 3d DCA 1987). · cites it 4× “Second, Section 674.403(1), Florida Statutes (1985), clearly gives a bank customer the right to stop payment on "any item payable" from the customer's account, subject to certain written formalities not relevant here.”

JTM, INC. v. Totalbank, 795 So. 2d 161 (Fla. 3d DCA 2001). · cites it 2× “purchased by a customer whose account is debited in payment for the check is not a check drawn on the customer's account within the meaning of subsection (a)...."). Thus, JTM has failed to state a claim for relief under section 674.”

Cash-A-Check of South Florida, Inc. v. Sunshine Elec. Contractors, Inc., 26 Fla. Supp. 2d 17 (Fla. Palm Beach Cty. Ct. 1987). “§ 674.403, F.S.A., Comment 8 (1966). If Plaintiff is classified as a holder in due course of the check, it would take the check free of the defense that Nicastro fraudulently induced the issuance of a second check.”

— 674.403(1) — 7 cases

Arnold, Matheny, Pa v. First Am. Holdings, 982 So. 2d 628 (Fla. 2008). “See § 674.403(1), Fla. Stat. (stating that a stop payment order must be "received by an *639 officer of the bank during a banking day and at a time and in a manner that affords the bank a reasonable opportunity to act on it").”

Capital Bank v. Schuler, 421 So. 2d 633 (Fla. 3d DCA 1982). “It says that, as a matter of law, it could rightfully make payment despite the stop-payment order since the order failed to describe the check with certainty as required by Section 674.403(1), Florida Statutes (1977), and was, therefore, neither valid nor binding.”

Se. First Nat. Bk v. Atl. Telec, 389 So. 2d 1032 (Fla. 5th DCA 1980). “[2] § 674.403(1), Fla. Stat. (1979), provides: "A customer .”

Any Kind Checks Cashed, Inc. v. Talcott, 830 So. 2d 160 (Fla. 4th DCA 2002). “See § 674.403(1) (regarding a customer's right to stop payment).”

— 674.403(3) — 2 cases

Se. First Nat. Bk v. Atl. Telec, 389 So. 2d 1032 (Fla. 5th DCA 1980). “[2] § 674.403(1), Fla. Stat. (1979), provides: "A customer .”

SouthTrust Bank v. PartsBase.com, Inc., 875 So. 2d 17 (Fla. 4th DCA 2004). “(drawer) filed a one count complaint against SouthTrust Bank (Bank) under section 674.403, Florida Statutes (2000) for damages arising from the payment of a check after the drawer had delivered a stop-payment order.”

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