Payment over a stop payment order gives rise to liability:

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According to UCC 4-403(d), if the drawee bank pays a check over a stop-payment order, the bank is liable to the drawer for any loss resulting from the payment. The liability arises if the drawee bank was orally notified of the stop payment order within 14 days before the check was paid, and the drawer suffered a loss due to the payment. Written notice of a stop payment order within six months of the check's date is also sufficient to impose liability. However, option A is incorrect because the bank can be held liable even if it had no knowledge of the stop payment order before the check was presented. Option B is incorrect because there is no specific timeline mentioned, and liability can arise even if the bank was notified at the time of check presentation.

Payment Over a Stop Payment Order Gives Rise to Liability