Can I place a stop payment on a cashier's check? How long is the wait before the money is credited to my account?
A bank cannot refuse payment on its cashier's check, except under very limited circumstances. Most states have adopted language in their versions of the Uniform Commercial Code (UCC) that provide a process for the remitter or payee on a cashier's check to file a claim and statement that the check has been lost, stolen or destroyed.
Under the UCC provision, the claim matures ninety days after the issue date of the original check. During that period, the issuing bank remains obligated to pay the original check if it is presented for payment. Once the claim matures, the bank becomes obliged to honor the claim, and once the claim is honored, the bank is no longer obligated to pay the original check.
The issuing bank may decide to refund your money sooner, if it has strong evidence that the original check won't be presented, or if the remitter or payee can produce the remnants of the check after it's been through the wash. However, it does so at great risk if there's a chance the check will be presented; therefore, the bank might try to get the claimant (remitter or payee) to put up a bond to guarantee he or she will make the bank whole if it has to pay twice. If the bank is in a state that has the required language in its UCC (look for section 3-312 - or 4-406 in New York only), there is a legal framework for you -- if you can wait three months for your money.
Published on BankingQuestions.com 4/30/08
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A bank cannot refuse payment on its cashier's check, except under very limited circumstances. Most states have adopted language in their versions of the 