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Home >> Checks/Money Orders >> Checks You Received
Obtaining Funds from Stopped Check
I received a cashier's check for $10,000 in exchange for some merchandise. The people who issued the check fraudulently told the bank that the check was lost and the bank placed a stop payment on it. What recourse do I have against the bank? How can I get the funds? |
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 Under the Uniform Commercial Code, a bank remains liable on its cashier's check to any person with the right to enforce payment. That includes you as the payee, unless the bank has some claim against you.
You should write to the issuing bank, enclosing a copy of the cashier's check, saying that you are asking that the bank honor its obligation to pay the check under sections 3-411 and 3-412 of the Uniform Commercial Code. The bank may claim that, because the check was reported lost, they are no longer obligated to pay it. If more than 90 days passes from the date of the original check, that claim could be legitimate, but if 90 days has not yet passed, the fact that the bank may have already reimbursed its customer should not be your concern.
Given the amount involved, you might consider discussing this problem with an attorney, but if you hope to get your funds from the bank, take action quickly. If you are unable to recover from the bank, you will still have a right to pursue your purchaser for the price of the merchandise you sold.
Published on BankingQuestions.com 5/01/08
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