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Home >> Checks/Money Orders
Effect of Stop Pay on Cashier's Check
How soon will I be able to obtain my money from a bank once they have stopped payment on a cashier's check that I sent? The bank told me they would put stop payment on the check in 30 days, not 90.
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 Under the provisions of the Uniform Commercial Code as adopted by most states, the remitter or payee of a cashier's check can enter a claim that a cashier's check was lost, stolen or destroyed (a "Claim"), and the claim becomes enforceable 90 days after the issue date of the check. Once 90 days has elapsed, the issuing bank is protected from having to honor the original check if it is presented after the bank has honored the Claim by replacing the check or reimbursing the claimant. If the bank elects to replace the check or reimburse you before the 90th day, it does so at its own risk that the original check will also be presented for payment before the 90th day, in which case the bank would be obligated to pay the original check.
If the bank reimburses you before the 90 days has passed, it may require you to sign an indemnification agreement, which would mean you'd agree to pay them back if the bank has to pay the first check. Based on what you have asked, the bank will reimburse you after 30, rather than 90 days, but you'll have to ask the bank to be sure.
Published on BankingQuestions.com 11/05/08
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