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Cashier's Check - Stop Payment
Question: If we stop payment on a cashier's check, what are the consequences? We have a customer who really wants us to do this!
Answer: No stop payment is permitted! Section 3.411 of the UCC imposes damages against a bank that wrongfully refuses to honor a cashier's, teller's or certified check or stops pay on one of those. You CAN re-issue these items after 90 days if a party gives you a declaration of loss under section 3.312, asserting that the item is lost, destroyed or stolen.
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Comments & Questions
If you would like
to comment on legislative topics or if you have questions about this
information please call our public affairs expert, Mae Beth Palone at
(800) 749-4228 or E-mail mbpalone@ibat.org.
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