Check Handling, Cashier’s Check: Cashier's Check - Stop Payment
Printer-friendly VersionQuestion:
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.