Verbiage for Demanding Payment Based on UCC

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Question:

We are the bank of first deposit for a cashier's check returned to us due to a stop payment by the paying bank. It is past the 24 hour window. We need the proper verbiage or a sample template to demand payment, in writing, based on UCC. Do you have a sample?

Answer:

Only banks located in the state of New York can put "stop payments" on their cashier's checks, and only under the conditions that other banks could refuse to honor their cashier's checks if they've previously paid a UCC section 3-312 claim (New York puts their version of the 3-312 claim in NY UCC section 4-403 as a stop payment).

If the cashier's check in question is less than 90 days old, even a section 3-312 refusal to honor would be a breach.

If you need legal advice, talk with an attorney. But you can send a letter to the paying bank citing a breach of UCC section 3-412 (Obligation of Issuer of Note or Cashier's Check) and asserting your bank's right to payment of the check and compensation for expenses and loss of interest under section 3-411 (Refusal to Pay Cashier's Checks, Teller's Checks, and Certified Checks).