Cashier Check mis-issued

Posted By: bamboozled

Cashier Check mis-issued - 10/12/21 09:05 PM

If a teller issued a cashiers check to a customer and should not have.....can we place a stop payment on that cashiers check?
The teller did not wait until funds cleared the account to issue the cashiers check on. They were fraudulent funds. I don't think we have any rights to do so but thought I would ask.
Posted By: BrianC

Re: Cashier Check mis-issued - 10/12/21 09:10 PM

You would be liable to a holder in due course for failure to pay a cashier's check under your state's Uniform Commercial Code 3-411. You cannot place a stop payment on a cashier's check as it represents an obligation of the bank.
Posted By: John Burnett

Re: Cashier Check mis-issued - 10/13/21 02:00 PM

Assuming that the customer's account is now overdrawn, you can pursue the customer on the overdraft. And re-train the teller.