Even though we all know that you cannot stop payment on a cashiers' check, we have received one returned and stamped "payment stopped". The check was issued only 1 week ago, so the 90 days for claiming a lost or stolen check indemnity has not expired. Also, we know that our customer presented a check to the local branch for payment, and that they issued the check to him for that particular item. He has not reported the check lost or stolen. How do we protest this return?

I'd suggest a call to the offending bank as a first step. Point out that, as a holder in due course, your bank is entitled to payment of the cashier's check. Then ask the issuing bank to review sections 3-312, 3-411 and 3-412 of the Uniform Commercial Code. Finally, ask the bank whether it would prefer to have you re-present the check through in-clearing, by direct mail, or in person (assuming it's close by).