Despite long standing practices of banks, and some relevant but indirect legal authority, an important issue concerning stopping payment on cashier’s checks and certified checks (“Bank Checks”)[1]� remains unclear among many banks, attorneys and the public. That issue is whether a bank may, at the request of a customer, stop payment on a Bank Check[2]� prior to 90 days from issuance, or for reasons other than if the check is lost, stolen or destroyed.[3]�
Initially, a brief history of this area is necessary. Prior to July 1, 1991, a remitter (i.e., a purchaser) or payee of a Bank Check had no right to demand a stop payment on a Bank Check. No matter the basis for such a demand, the Bank retained complete discretion as to the issuance of a stop payment on a Bank Check. Nor did the remitter or payee have any recourse, if the Bank refused to stop payment.[4]�
