Answer:
Answer by Brian Crow: Regardless of what you choose to call the item, if it is drawn on the bank and signed by an employee of the bank, it is a cashier's check. If you are utilizing a service and the check is drawn on a different bank and signed by an employee of your bank it meets the definition of a teller's check. In either case, your state's version of the Uniform Commercial Code sections 3-411 and 3-412 will prohibit stop payments on these items.
Answer:
Answer by Ken Golliher: Nothing to add, so I will just say it differently. Your bank "accepted" the check when your employee signed it. You cannot change your mind later. That's why people ask for a cashier's check in a variety of circumstances when they want to make certain the funds are paid.
As Brian suggests, whether it says "cashier's check," "official check" or "three pound pig" across the top, if it meets the UCC definition of a "cashier's check" then that is simply what it is.
There are remote, attenuated circumstances outlined in the UCC where a bank can refuse to pay a cashier's check, but 99.9% of the time the answer is simply: No.
First published on BankersOnline.com 5/6/13
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