Answer:
Stop payments are not permitted on cashier's checks under Texas's UCC (as is the case in almost every state). Texas has adopted UCC section 3-312 to provide a mechanism for recovery of funds from a lost, stolen or destroyed cashier's, certified, or teller's check. A bank cannot refuse to pay its own cashier's check if it's been presented by a holder in due course or other person eligible to enforce payment. It could refuse to pay it if presented by the remitter and the bank had some defense to payment, such as fraud or an incorrect payment, etc.Under UCC 3-312, a claim for reimbursement by the remitter or payee based on a statement that while in the claimant's possession the check was lost, stolen or destroyed, becomes enforceable 90 days after the check's date. At that point, if the original check hasn't been paid, the issuing bank can honor the claim and thereafter refuse to pay the original check.
First published on BankersOnline.com 01/02/12
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