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#1941416 - 07/16/14 01:16 PM Stop Payments on Cashier Checks - Lenth of Time
cadym Offline
Member
Joined: Aug 2007
Posts: 51
Michigan
Is there any suggest (or required) time frame that a stop payment should be placed on a cashier check?

We normally put a 6 month expiration date on 'every day' checks, 2 years if they are stolen.

I'm having a hard time finding if there are rules on the length of time if we do put a stop pay on a cashier check for the allowed reasons only of course.

Thank you!

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#1944668 - 07/23/14 05:32 PM Re: Stop Payments on Cashier Checks - Lenth of Time cadym
Paul Orlowski Offline
New Poster
Joined: Jun 2014
Posts: 9
Connecticut, USA
Under the UCC, cashier checks must be honored for the first 90 days after being issued. That said, our institution requires a written indemnification agreement to stop a cashier check within the first 90 days. That places the customer on the hook for both checks being honored. It may be advisable to hold the funds necessary to cover the second check as well. As for the length of the stop, the rule on stop payments is 14 days if orally requested, six months if requested in writing.

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#1944679 - 07/23/14 05:44 PM Re: Stop Payments on Cashier Checks - Lenth of Time Paul Orlowski
cadym Offline
Member
Joined: Aug 2007
Posts: 51
Michigan
thanks!

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#1946163 - 07/25/14 08:04 PM Re: Stop Payments on Cashier Checks - Lenth of Time cadym
Elwood P. Dowd Offline
10K Club
Elwood P. Dowd
Joined: Aug 2001
Posts: 21,939
Next to Harvey
Cashiers checks are "accepted" when your employee signs them; a bank cannot stop payment on a cashiers check.

Michigan appears to have enacted the model language from 3-312 of the UCC. It would allow you to replace the check on receipt of an affidavit to the effect that it had been lost or stolen, but you would not stop payment on the original.

You need to review the relevant section of your state's UCC.
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