Legal Question in Banking Law in Utah

Travelers checks

A travelers check was found inside a wallet purchased at an estate sale. The purchaser contacted the issurer of the check and was told to return it to the corp. office so they could attempt to contact the heirs of the person who bought the check originally. The purchaser thinks that the check should belong to her since it was inside something that was purchased legally at a sale and it is not the fault of the purchaser if the heirs of the original owner are careless.

Am I right or wrong? Isn't the purchaser of the wallet entitled to anything inside since all auctions are conducted as no returns and all items as is.


Asked on 6/10/03, 10:29 pm

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

Re: Travelers checks

An interesting question. A regular check is a contract between the account holder, the bank and the payee. If this was a regular check, the buyer would not be entitled to anything. A traveler's check is a unique instrument. It is a contract between the purchaser of the travelers check and the seller, the seller agreeing to pay the subsequent holder. If the travelers check was signed by the original purchaser, they you are probable entitled to cash it, as the signature shows intent to use it - place it into the stream of commerce. If it was not signed, then that makes the issue more cloudy. In that case, the intent is not present, and it should be considered an account with the traveler's check company, and should become the property of the heirs.

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Answered on 6/10/03, 11:34 pm


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