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#2185228 - 07/12/18 09:34 PM Declaration of Loss - Official Bank Check
Believing... Offline
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In the mountains
Regarding the UCC 3-312 for paying a claim on a lost bank check, can the bank define its exposure by adding a provision in the affidavit that states, "I understand that a new check will not be issued before 90 days after the issue date of the lost, stolen or destroyed check unless the amount is less than $_________. We were thinking of using a nominal amount of $100 or so. Is this a good idea?

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#2185298 - 07/13/18 03:10 PM Re: Declaration of Loss - Official Bank Check Believing...
JacF Offline

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I've never seen this done, and I'm not sure what is gained by doing so.

If I am reading this correctly, the bank is offering to accept the risk of reissuing small checks prior to the 90 day mark? What are the circumstances under which the bank would choose to do this?

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#2187647 - 08/01/18 07:19 PM Re: Declaration of Loss - Official Bank Check Believing...
Believing... Offline
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In the mountains
Yes, you are correct. We do not issue money orders, so the purpose would be help customers who would be harmed monetarily by the wait period. I'm sure there could be other circumstances. I was actually updating our DoL form and stumbled upon a sample form online from another bank that had the above language. Bank counsel wanted me to include it on our new form, but we are still discussing what the circumstances will be.

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#2187693 - 08/02/18 03:07 AM Re: Declaration of Loss - Official Bank Check Believing...
JacF Offline

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I would be concerned that bank counsel wants to include this language without knowing when or how that clause will actually apply. Until you're clear on what circumstances would prompt you to want this language, you can't write the language with any certainty. Otherwise, you may end up creating a trap for yourself where you did not intend it.

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#2187938 - 08/03/18 02:45 PM Re: Declaration of Loss - Official Bank Check Believing...
Elwood P. Dowd Offline
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Elwood P. Dowd
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The logic escapes me, but you could, on a case by case basis, re-issue a check for a small amount before the statutory waiting period is over.

But why on earth would you promise to do it?
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