Mich. Comp. Laws » Michigan Compiled Laws / Chapter 440 / Act 174 of 1962
Michigan Compiled Laws

Mich. Comp. Laws § 440.4403 (2026)

Customer's right to stop payment; lapse and renewal; burden of proof of loss.

✓ current as of July 2026
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UNIFORM COMMERCIAL CODE


Act 174 of 1962


440.4403 Customer's right to stop payment; lapse and renewal; burden of proof of loss.

Sec. 4403.

    (1) A customer or any person authorized to draw on the account if there is more than 1 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 4303. If the signature of more than 1 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, 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 6-month periods by a record given to the bank within a period during which the stop-payment order is effective.

    (3) 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 4402.

History: 1962, Act 174, Eff. Jan. 1, 1964 ;-- Am. 1993, Act 130, Eff. Sept. 30, 1993 ;-- Am. 2014, Act 103, Imd. Eff. Apr. 10, 2014

Notes of Decisions
Cited in 3 cases, 1968–1996 · leading case: Schering-Plough Healthcare Prods., Inc. v. Nbd Bank, N.A., N/k/a Nbd Bank, & Nbd Bank Dearborn, N.A., 98 F.3d 904 (6th Cir. 1996).
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Schering-Plough Healthcare Prods., Inc. v. Nbd Bank, N.A., N/k/a Nbd Bank, & Nbd Bank Dearborn, N.A., 98 F.3d 904 (6th Cir. 1996). · cites it 3× “While a stop payment order directs the bank not to pay a check for six months, Mich. Comp. Laws § 440.4403 (2), the failure to fund the account for the payment of a check prevents the payment of a check only until the account is funded, an event that may occur at any time.”
Stanek v. Nat'l Bank, 430 N.W.2d 819 (Mich. Ct. App. 1988). · cites it 3× “[MCL 440.4403(1); MSA 19.4403(1).] The district court determined that for purposes of this statute a bank with a computer system would not be held to a higher standard than a bank without such advanced technology and concluded that the bank did not have a reasonable time, i.”
De Guvera v. Sure Fit Prods., 165 N.W.2d 418 (Mich. Ct. App. 1968). “* CLS 1961, §440.4403(1) (Stat Ann 1964 Bev § 19.4403 [1]) states, “A customer may by order to his bank stop payment of any item payable for his account.”
— Mich. Comp. Laws § 440.4403(1) — 2 cases
Stanek v. Nat'l Bank, 430 N.W.2d 819 (Mich. Ct. App. 1988). “[MCL 440.4403(1); MSA 19.4403(1).] The district court determined that for purposes of this statute a bank with a computer system would not be held to a higher standard than a bank without such advanced technology and concluded that the bank did not have a reasonable time, i.”
De Guvera v. Sure Fit Prods., 165 N.W.2d 418 (Mich. Ct. App. 1968). “* CLS 1961, §440.4403(1) (Stat Ann 1964 Bev § 19.4403 [1]) states, “A customer may by order to his bank stop payment of any item payable for his account.”
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