I am with a start up bank and am responsible for creating/ obtaining cashier checks. I know that there needs to be a statement on them "...If lost or stolen you must complete a declaration of loss..." or something to that effect. Does anyone know the correct language?

The Customer's Copy has the following language on our cashier's checks: "Notice to Customer. The purchase of an INDEMNITY BOND from your insurance company will be required before any Official Check of this Bank will be replaced".

Our Request for Cashier's Check form says, "NOTICE TO CUSTOMER REGARDING OFFICIAL BANK CHECKS. The purchase of an Indemnity Bond will be required before this check will be replaced or refunded in the event it is lost, stolen, or misplaced."

Hope that helps.

Stop, please help me. I've been researching most of the day an indemnity issue for lost/stolen cashier checks. Where are you getting your information?

My information is printed directly on our cahier's check customer copies and on the form that customers fill out to request checks.

That indemnity bond language must have been on your checks, tpowers4, for many years. But it's pretty much outdated now. Section 3-312 of the UCC provided a refund mechanism for lost, stolen or destroyed official checks. You might try to find out if your state adopted the commentary to that section of the UCC, because the "official" commentary states that banks are expected NOT to require an indemnity bond to honor claims under 3-312.

I have seen legends reading like this:

This check may only be replaced after 90 days from its issue date in the event it is stolen, lost or destroyed.

It might be that your bank is thinking about UCC Section 3309 but not about UCC Section 3312. As an add on to John's posting you should review Official Comment 1 to UCC Section 3312 which provides in pertinent part:

"Under Section 3-309 a person seeking to enforce a lost, destroyed, or stolen cashier's check or teller's check may be required by the court to give adequate protection to the issuing bank against loss that might occur by reason of the claim by another person to enforce the check. This might required the posting of an expensive bond for the amount of the check. Moreover, Section 3-309 applies only to a person entitled to enforce the check, It does not apply to a remitter of a cashier's check or teller's check or to the drawer of a certified check. Section 3-312 applies to both. The purpose of Section 3-312 is to offer a person who loses such a check a means of getting refund of the amount of the check within a reasonable period of time without the expense of posting a bond and with full protection of the obligated bank."