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Utah House rejects bill requiring written reason for stop-payment requests after debate over bank liability
Summary
House Bill 96, which would have required a written reason for stop-payment orders on checks and included language holding banks harmless, failed after extended debate about whether the measure would shield banks from liability; final tally 14 yes, 53 no.
House Bill 96, a measure that would have required someone requesting a stop payment on a check to provide a written reason, failed in the Utah House on Jan. 28 after members expressed deep concerns that the bill's language would protect banks from liability in cases where they failed to stop payment.
Representative Slack, the bill sponsor, said the change was intended to create a written record and deter abusive stop-payment orders. "Very simply, it just says that when you ask for a stop order on a check, you give a reason for…
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