Common use of Stop Payment Clause in Contracts

Stop Payment. Provided such notice is timely so that the Credit Union shall have reasonable opportunity to act upon it under its rules, you may order stop payment on a check drawn on the account, other than one that has been guaranteed. In the event of an oral stop payment order, the order shall be valid for only fourteen (14) days thereafter, unless confirmed in writing. Written stop payment orders will remain in effect for only six (6) months, unless renewed in writing. You have the burden of establishing the fact and amount of any loss resulting from payment contrary to a binding stop payment order. The Credit Union will charge a fee per Check when a stop payment is placed on a Check(s), which will be billed to your Account.