|
 |
Home >> Checks/Money Orders
Trying to be Safe with a Cashier's Check
I live in NY. I am selling a $30,000 car to a person in NY. He is coming to a branch of his bank with me. If the teller generates a cashier's check to my buyer and he gives it to me in front of the teller, and I deposit it in a new account at the same bank, is it as good as cash?
If the buyer, after taking the $30,000 car, calls the bank and says the check was lost and the bank puts a stop payment on the check, what is the significance of the 90 day waiting period? Will the check I deposited be paid or not? I don't feel like losing a car over this!
|
|
 It seems you have read some of the horror stories about phony cashier's checks in our Scams/Fraud. Your plan to meet at an office of the buyer's bank is a wise one. Once you have deposited that endorsed cashier's check in your new account, you should have no problems.
A bank cannot stop payment on its cashier's check. Actually, New York has used the words "stop payment" in its Uniform Commercial Code provision for handling claims that a cashier's check has been lost, stolen or destroyed. However, if the bank witnesses the negotiation of that check by the purchaser of your car and the deposit of that check by you, the bank could not in good faith accept a claim that the check had been lost.
If you are really concerned about that cashier's check, convince the seller to cash the check at his bank, and hand the cash over to you so you can deposit it either there, or, if you don't mind the risk of carrying that much cash around, at your own bank. That will mean that a bank will have to file a Currency Transaction Report on the check cashing and your deposit (see the article "What Your Bank REALLY Tells the IRS").
Published on BankingQuestions.com 4/30/09
|
| |
|
Accounts
Article
Q&A
Podcast
Video
Blog
Discussions
PDF
Powerpoint
