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#11360 - 06/18/01 03:50 PM Stopping Payment On Cashier's Check

Our bank has received 2 cashier's checks as returned items. Reason is Stop Payment.

In talking to the bank that returned the items, they were issued as the result of a kiting scheme.

Do we have recourse against the bank that returned them? We accepted the checks in good faith, but our customer has no money in her account to cover the checks.

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#11361 - 06/19/01 12:57 PM Re: Stopping Payment On Cashier's Check
John Burnett Offline
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John Burnett
Joined: Oct 2000
Posts: 39,684
Cape Cod
Check with your bank's legal counsel. You have a pretty strong case that you qualify as a holder in due course on these items, and the issuing bank will have to make you whole. Even if these were not cashier's checks, you, as holder in due course, could attempt to enforce the checks against the maker.
John S. Burnett
Fighting for Compliance since 1976
Bankers' Threads User #8

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