Legal Question in Banking Law in Idaho

Stopping payment on cashier's check

My sister took a cashiers check as payment for the sale of her four-wheelers. They buyer took the goods, sister deposited the cashiers check into her checking account and now finds out that the buyer stopped payment on the check and they buyer cannot be located. From what I have read, the bank is responsible for the cashiers check and they have to honor it and it is the banks responsibility to collect from the person that originally purchased the cashiers check?????? If not, what good is getting a cashiers check?


Asked on 10/15/03, 2:43 pm

1 Answer from Attorneys
Alvin Lundgren Alvin R. Lundgren, L.C.

Re: Stopping payment on cashier's check

Generally the issuing bank may accept an affidavit from the purchaser which states the reason for the cancellation, but which still requires the purchaser to be responsible in the event the check is negotiated. Go to the issuing bank and get all of the information they have about the check and the purchaser. Demand the bank to make the check good. Advise the bank, politely but firmly, that you relied on their cashier's check and if they do not make it good that you will have to file suit against them. IF the bank does not make the check good, then you will have to sue the bank and the purchaser.

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Answered on 10/16/03, 12:15 pm


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