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#1393303 - 05/19/10 02:55 PM CASHIER CHECK STOPPED?
Tessie Offline
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Is there ever a time when you can do a stop payment on a cashier check?

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#1393340 - 05/19/10 03:27 PM Re: CASHIER CHECK STOPPED? Tessie
John Burnett Offline
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In New York state, yes, but only because New York added the "lost, stolen or destroyed" process for cashier's, teller's and certified checks in its UCC section 4-406 and refers to it as stopping payment. Everyone else drops it into 3-312 and avoids the phrase "stop payment."

A bank can place a stop on its records as an aid in handling a cashier's check that's been reported lost, stolen or destroyed. It can even put one on the system to address a cashier's check issued in error. But those stops are strictly for use as an operational device to grab someone's attention if the check shows up. Then, someone has to decide what to do about the check. But a bank cannot refuse payment on its cashier's, teller's or certified checks except when section 3-312 (or 4-406 in NY) applies and the 90-day waiting period has elapsed, or when the bank has a defense to payment to the person attempting to enforce payment.

So, for example, if Samantha Smith is issued a $50,000 cashier's check to close out her joint savings account, but her co-owner had withdrawn all but $5,000 a few minutes earlier, the issuing bank could refuse to pay the cashier's check if Samantha presents it for payment, but not if it's presented by Main Street Bank, which accepted it for deposit to Samantha's account there, if Main Street Bank is a holder-in-due-course.
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#1393362 - 05/19/10 03:52 PM Re: CASHIER CHECK STOPPED? John Burnett
Tessie Offline
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So are money orders handled the same way?

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#1393387 - 05/19/10 04:17 PM Re: CASHIER CHECK STOPPED? John Burnett
madukes Offline
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madukes
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is there any difference for an "official" check? Ours are not drawn on us but on a different bank/processor.

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#1393397 - 05/19/10 04:30 PM Re: CASHIER CHECK STOPPED? Tessie
edAudit Offline
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Money orders are not like Cashier Checks and can be stopped in New York as in a personal check.
Last edited by EdAudit; 05/19/10 04:31 PM.
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#1393423 - 05/19/10 04:46 PM Re: CASHIER CHECK STOPPED? edAudit
John Burnett Offline
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A BANK money order (signed by a bank representative, not by the purchaser/remitter) is a cashier's check. A PERSONAL money order is not, so can be stopped by the purchaser/remitter.

Official checks drawn on a different bank/processor but signed by a representative of your bank are legally "teller's checks," and are generally treated like cashier's checks with regard to stopping payment.
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#1393569 - 05/19/10 07:15 PM Re: CASHIER CHECK STOPPED? John Burnett
edAudit Offline
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Sorry John I have not heard that term (bank money order) in a long time. I thought we were referring to personal m/o.
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#1393651 - 05/19/10 08:30 PM Re: CASHIER CHECK STOPPED? John Burnett
madukes Offline
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thank you!

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