A drawer whose bank paid checks over a stop-payment order may not be entitled to have his account recredited if he is unable to show he suffered any loss.

Question

Quizplus · Accepted Answer

The drawer-customer has the burden of establishing the fact and amount of the loss.To show a loss,the drawer must establish that the drawee bank paid a person against whom the drawer had a valid defense to payment.To the extent that the drawer has such a defense,he has suffered a loss due to the drawee's failure to honor the stop-payment order.

A Drawer Whose Bank Paid Checks Over a Stop-Payment Order