I checked the Info Vault before coming here to ask my question and couldn't find anything relating to my question.

Is there verbiage that we can have a vendor print on our Cashiers Checks that we could use to protect us against losses for any stop payments if we should accept them??

Someone within the bank suggested the following verbiage to be placed on the Purchaser's copy. Does anyone have any other suggestions or advice??

“IF THIS CHECK IS LOST WHETHER THROUGH DESTRUCTION, THEFT OR OTHERWISE; THE BANK MAY, IN ITS SOLE DISCRETION, REPLACE THE CASHIERS CHECK IF THE CUSTOMER AGREES TO INDEMNIFY THE BANK AGAINST ANY AND ALL CLAIMS, LOSSES, DAMAGES, COSTS, CHARGES AND EXPENSES RELATED TO THE CHECK (INCLUDING ATTORNEY FEES) BY SIGNING AN INDEMNITY AGREEMENT AND PROVIDING SUCH OTHER SECURITY AS THE BANK DEEMS APPROPRIATE. HOWEVER, THE PURCHASER UNDERSTANDS THAT THE BANK MAY NOT BE WILLING TO ISSUE A REPLACEMENT CHECK OR A REFUND. IN CERTAIN CIRCUMSTANCES THE BANK MAY REQUIRE AN INDEMNITY BOND SUFFICIENT TO PROTECT THE BANK AGAINST ANY AND ALL FURTHER CLAIMS ON THE CHECK.

THE PURCHASER CANNOT STOP PAYMENT ON THIS CHECK AND CANNOT REQUIRE THE BANK TO REFUSE PAYMENT UNLESS IT OBTAINS A COURT ORDER TO THAT EFFECT. THE PURCHASER UNDERSTANDS THAT TO PROTECT THE INTEGRITY OF ITS CASHIERS CHECKS, THE BANK MAY APPEAR IN AND DEFEND ANY COURT ACTION BROUGHT TO OBTAIN SUCH A COURT ORDER.

THE BANK IS BOUND TO HONOR THIS CHECK EVEN IF THE PURCHASER DETERMINES AFTER DELIVERING THE CHECK TO THE PAYEE THAT THE PAYEE OF THE CHECK IS NOT ENTITLED TO THE CHECK.”

I think you are asking for an opinion or a review that is more legal in nature (protecting the bank against potential claims) as opposed to compliance with a regulation. You should probably have qualified legal counsel review the concept and the verbiage.

Bonnie I agree, but its a grand idea if all will fit on the purchasers copy

I would certainly stay away from reciting the UCC in an instrument.,

We have a short statement on ours that says in case of a lost check an indemnity bond may be required. It's in small print on the face of the check and is done by the check vendor.