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Stopping payment on other official checks

Answered by: 

Question: 
Are loan disbursement checks, escrow checks and accounts payable checks "official checks"?
Answer: 

In section 3-104 of the UCC, a cashier's check is defined as "a draft with respect to which the drawer and drawee are the same bank or branches of the same bank." Under that definition, any check drawn by a bank on itself would be a cashier's check. There are restrictions on the definition of cashier's check in Regulation CC, but they don't affect the UCC definition when it comes to an ability to stop payment or the applicability of section 3-312 on Lost, Stolen or Destroyed Cashier's, Teller's or Certified Checks.

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First published on 05/17/2020

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