Unfortunately for the customer in need of a stop payment order, stop payment orders are not permitted on cashier’s checks.

A cashier’s check is special kind of check that is drawn directly on the bank.  While the customer that ordered the cashier’s check has paid the bank for it, the check itself is now from the bank’s own account and is not drawn on the customer’s account.  Consequently, a bank may not refuse to pay its own cashier’s with very limited exceptions.  The value of cashier’s checks is primarily based on the fact that the check is already paid for by the remitter and the issuing bank is required to honor the check if it’s presented by the payee.

If the bank refuses to honor a cashier’s check, it may be liable to the holder for expenses, loss of interest, and other damages.  Section 3-411 of the UCC covers the ramifications that may result if a bank wrongfully refuses to pay a cashier’s check.  This section of the Uniform Commercial Code, that is codified by most states, stipulates:

If the obligated bank wrongfully (i) refuses to pay a cashier’s check or certified check, (ii) stops payment of a teller’s check, or (iii) refuses to pay a dishonored teller’s check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment and may recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages.

Requests can be made to have a cashier’s check reissued.  Section 3-312 of the UCC controls the reissuance requirements for cashier’s check.  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.

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