I understand that a currency exchange is considered a holder in due course, and is entitled to payment on a check, even when the payor stops payment through his bank. Is it effective to have checks with printed, conspicuous language saying "not valid for payment at currency exchanges without prior verification", either on the front of the check or the back in the endorsement area? Is that sufficient to put currency exchanges on notice that they need to verify before paying out a check, so that they won't be considered a holder in due course if they fail to call first?
Such a caption would not stand up as an impediment to rights of a holder in due course with regard to a check. It might, however, have a chilling effect on the willingness of a currency exchange to cash such a check.
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Such a caption would not stand up as an impediment to rights of a holder in due course with regard to a check. It might, however, have a chilling effect on the willingness of a currency exchange to cash such a check.
