Compliance Info on Paper Checks

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Question:

I was wondering if you could point me in the right direction as to where to find more information on compliance for paper checks? Whenever I place a stop payment on a paper check, there's a disclosure that says "this request will expire in 6 months in order to comply with regulatory requirements." For the customers who ask for a more in-depth answer, what can I tell them?

Answer:

randy carey

You need to review your State's version of the UCC Article 4 Section 403: https://www.law.cornell.edu/ucc/4/4-403

Answer:

john burnett

That is the standard duration of the effectiveness of a stop payment in virtually all states under the UCC section Randy cited. However, a bank can change its policy and practice to make stop payment orders on checks drawn on it effective for a different (typically longer) period by agreement with its customer. Typically, such an agreement would be found printed on stop payment forms or displayed on an online banking webpage via which stop payment orders are accepted.