Many states have adopted section 3-312 of the Uniform Commercial Code (UCC), which provides a framework for handling lost, stolen and destroyed cashier's, teller's, and certified checks. New York has inserted similar provisions in section 4-406 of its version of the UCC.|
In states that have adopted this language, the remitter or payee of a cashier's check who has had possession of the check, may make a statement under the penalties of perjury that the check has been lost, stolen or destroyed, and make a claim for the amount. The claim becomes enforceable ninety days after the date the check was issued. Once the claim is enforceable, if the original check has not been paid, the bank that issued the cashier's check becomes obligated to pay the claim, and is no longer obligated to pay the original check.
If the bank decides to honor the claim before it becomes enforceable, or if the bank decides to honor a similar claim in a state that has not adopted the section 3-312 language in its version of the UCC, the bank risks having to honor the original check and having to make the payment twice. These banks often require security from the person making the claim, sometimes in the form of a security bond that is expensive and hard to obtain.
In states that have not adopted the Section 3-312 language, the issuing bank doesn't have to honor any form of lost, stolen or destroyed claim. Contact the bank that issued your cashier's check to find out how to proceed.
Published on BankingQuestions.com 4/17/08