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#2249983 - 03/02/21 08:51 PM official check
Ric30 Offline
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Can an official check, bank check, be returned for a reason other than payment stopped if done so within the midnight deadline?
Last edited by Ric30; 03/02/21 08:56 PM.
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#2249984 - 03/02/21 09:02 PM Re: official check Ric30
rainman Offline
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Yes, but as the drawer of the check the bank will be liable under the UCC, and can be liable for additional damages beyond the amount of the check under UCC 3-411. If the remitter has a problem with the payee, it cannot be solved by stopping payment on the check. That's why payees want cashier's checks instead of personal checks.
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#2249986 - 03/02/21 09:06 PM Re: official check Ric30
rlcarey Online
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Do you mean for alteration or forgery? I guess we would have to know what reason the OP had in mind.
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#2249987 - 03/02/21 09:09 PM Re: official check Ric30
Ric30 Offline
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No, it's a situation in which the purchaser of the check tried to buy something at auction, wasn't the highest bidder wasn't told that the highest bidder backed out. So the check purchaser was expecting the check to be returned I think. The depositor of the check is our client.

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#2249991 - 03/02/21 10:32 PM Re: official check Ric30
rlcarey Online
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So the remitter bought a check made payable to the auctioneer and handed it to them. The auctioneer then deposited a properly payable cashiers check.

This, my friend, is now between the remitter and the auctioneer and the bank has absolutely no dog in this hunt.
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#2250025 - 03/03/21 04:22 PM Re: official check Ric30
John Burnett Offline
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If your bank is the depositary bank in this scenario, you should not accept a return of a cashier's check issued by another bank for any reason other than "counterfeit" or "forged."
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#2250028 - 03/03/21 04:36 PM Re: official check Ric30
Ric30 Offline
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John, that is the answer we came to but I couldn't refuse the return since we got it through our Fed return file. I cannot do an adjustment through the Fed so I will have to deal directly with the other institution and hope that they admit the error of their ways.

Thank you all for your responses.

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#2250034 - 03/03/21 05:08 PM Re: official check Ric30
rlcarey Online
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Even still, I am still not sure that the bank has a dog in this hunt. The auctioneer now has a claim against the other bank. I am not sure as a depository bank I would get that involved. They would go after them under this or similar statute.

https://www.law.cornell.edu/ucc/3/3-411
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#2250042 - 03/03/21 06:09 PM Re: official check Ric30
Ric30 Offline
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I agree but higher ups want us to try to recover the funds first.

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#2250048 - 03/03/21 06:40 PM Re: official check Ric30
John Burnett Offline
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If your bank is not out the funds (because it charged the auctioneer for the returned deposited check), it has no claim against the issuing bank.
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