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Stop Payment on Bank Checks
Answer by John Burnett, BOL Guru

Question: Can a bank stop payment on a money order/banker's check/cashier's check?

Answer: Maybe and no and no.

If the money order referred to is a personal money order (not signed by the bank's representative), it's normally considered a special one-time customer deposit, subject to stop-payment rules. If it's a bank money order (signed by a bank rep), it's treated as a cashier's check (see below).

Not sure what you mean by a "banker's check." If it's a check drawn by a bank on another bank (sometimes referred to as a teller's check), a stop payment is not permitted under the UCC.

Ditto on a cashier's check. No stop payments.

There are rules against, and penalties for, refusal to pay a certified, teller's, or cashier's check (UCC 3-411). There are also specific procedures that can be followed to protect a bank from being liable for such a refusal if the check was lost, stolen, or destroyed (UCC 3-312).

First published on 10/4/04

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