Can a bank legally stop payment on a cashiers check if not lost or stolen?

UPDATED: Aug 18, 2011

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Can a bank legally stop payment on a cashiers check if not lost or stolen?

I received a cashiers check for $2000 and deposited it the same day as drafted. The check was real. Later that week my bank returned the check stop payment. The check was payable to me and deposited in my account. There was no fraud or theft involved. I was told the payee wanted to stop payment on the check.

Asked on August 18, 2011 Indiana


FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney

Answered 11 years ago | Contributor

A bank in this country can place a hold or stop payment on any private, business or cashier's check if the bank is suspicious of it or if the maker instructs the bank to do so. This is what happened on the $2,000 cashiers check that you received.

If the bank did not follow the maker's instructions and you ended up receiving the proceeds from it, the bank could very well be responsible for the $2,000 being returned to the maker.

The maker instructed the bank to stop payment on the check. There is some issue between you and the maker of the $2,000 check that needs to be resolved between you two so you can actually have cash in hand.

Good luck.

IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

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