A bank representative issued a cashier’s check for me to pay off my loan. She told me that she would send this check through internal bank mail to the payoff department in another state. The check was lost. I made a second payment, and my loan is now paid off, but this branch does not want to pay my money back. They say that they can pay me back in ninety-one days. Why can't I get back my money right away? I'm guessing that she never mailed the check.
There is a ninety day legal waiting period under the Uniform Commercial Code for claims of lost or stolen cashier's checks, counted from the issue date of the check. If the check was payable to the bank itself, it might have been expected that the bank would waive the waiting period, but apparently it decided not to do this.
Since the bank itself appears to have lost the check, it would not be unreasonable for you to ask for ninety days' interest on the funds that the bank has effectively tied up on you.
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There is a ninety day legal waiting period under the 