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Stop Payment on Cashier's Check
Is it legal to place a stop payment on a cashier's check?
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 The law does not permit a financial institution to refuse payment on its own cashier's check, except under specific very limited circumstances. For example, a bank could refuse payment to the payee of the cashier's check if the bank had a defense to paying it. A defense might include the fact that the check was issued in error, or the payee owed the bank money, but if the payee negotiates the check to a third party, such as another bank, the bank cannot refuse payment to the third party.
In most states, if the remitter or payee of the cashier's check signs an affidavit that the check was lost, stolen or destroyed, and waits 90 days from the date the check was issued, the issuing bank can pay the amount of the check to the claimant and thereafter refuse to pay the original check should it be presented. One important note: in the state of New York, the process of obtaining the affidavit that the check was lost, stolen or destroyed is referred to as "placing a stop payment" on the original cashier's check.
Published on BankingQuestions.com 4/15/08
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