Are Official Checks and Cashier's Checks the Same?

Question:

Is an Official Check considered the same as a Cashier's Check under the Reg CC next day availability rules?

Answer:

The term "official check" has no specific, legal meaning under Regulation CC or the Uniform Commercial Code. It may or may not be a cashiers check.

Regulation CC definition:
(i) Cashier's check means a check that is
(1) Drawn on a bank;
(2) Signed by an officer or employee of the bank on behalf of the bank as drawer;
(3) A direct obligation of the bank; and
(4) Provided to a customer of the bank or acquired from the bank for remittance purposes.

When you receive an item and it is drawn on a bank and signed by an employee of that bank I suggest you treat it as a cashiers check for availability purposes even if it is labeled as an official check.

First published on BankersOnline.com 06/2/03