she gave him a printed notice confirming his request to stop payment. Siniscalchi sought to recover the $200 paid on the check. Explain whether the stop payment order was effective.
On Tuesday, June 11, Siniscalchi issued a $200 check on the drawee, Valley Bank. On Saturday morning, June 15, the check was cashed. This transaction, as well as others taking place on that Saturday morning, was not recorded or processed through the bank’s bookkeeping system until Monday, June 17. On that date, Siniscalchi arrived at the bank at 9:00 a.m. and asked to place a stop payment order on the check. A bank employee checked the bank records, which at that time indicated the instrument had not cleared the bank. At 9:45 a.m., she gave him a printed notice confirming his request to stop payment. Siniscalchi sought to recover the $200 paid on the check. Explain whether the stop payment order was effective.
The stop payment order gives the right to the customer to stop a payment of an issued check, by saying orally at the time of issuing the check. An oral statement must be given in writing within 14 days of issuing the check to validate the stop payment order. In this case, Customer S has informed bank after six days of issuing the check. The bank may have given a printed notice regarding the stoppage of payment and the lack of information, but it cannot be considered valid since check has already been cashed. Customer S should have informed the bank earlier, so that bank had reasonable time to respond to Customer S's request.
In this case, Customer S may not be able to recover the amount that Customer S has issued by check against Bank V. A customer should order the bank to stop a payment in a timely manner, so that the bank has time to respond to it.