If a loan disbursement check used to payoff another loan is lost in the mail and we need to issue another one would we be considered the remitter and be allowed to complete a loss check affidavit after 90 days?

For a loan disbursement check would the borrower be the remitter or the bank for the following?

(3) "Declaration of loss" meansa statement, made in a record under penalty of perjury, to the effectthat (i) the declarer lost possession of a check, (ii) the declarer is the drawer orpayee of the check, in the case of a certified check,or the remitter or payee of the check, in the case of a cashier'scheck or teller's check, (iii) the loss of possessionwas not the result of a transfer by the declarer or a lawful seizure, and (iv)the declarer cannot reasonably obtain possession of the check because the checkwas destroyed, its whereabouts cannot be determined, or it is in the wrongfulpossession of an unknown person or a person that cannot be found or is not amenableto service of process

If the borrower is the payee of the lost check, they sign the statement as the payee. If it's payable to another party -- a service provider or the seller, for example, they borrower would be the remitter.

Who was the person who had the check in question and lost it? That's the person who should be making the statement/affidavit and claim.

We mailed the check and the payee never received it. The borrower did not handle the check.

OK, but the borrower's funds (from the loan) bought the check, so the borrower is the remitter.

So the borrower would sign the declaration of loss?

Either the remitter or the payee can provide a declaration of loss on a cashier's check. The borrower instructed you to purchase a cashier's check and send it to the payee with the proceeds of their loan. The bank was not the remitter because it was not the bank's money that purchased the check. So, your borrower is the remitter and is more than able to give you a declaration of loss under your procedures for handling and reissuing lost cashier's checks.

As Randy noted, the persons eligible to make the claim are the remitter or the payee. No one else. Whoever last had the check in their possession before it was lost, stolen or destroyed is the one who makes the claim. Since the check wasn't ever received by the payee, the remitter (in this case your borrower) gets to do it.