1. In this section, “obligated bank” means the acceptor of a certified check or the issuer of a cashier's check or teller's
check bought from the issuer.
2. If the obligated bank wrongfully refuses to pay a cashier's check or certified
check, stops payment of a teller's check, or refuses to pay a dishonored teller's
check, the person asserting the right to enforce the check is entitled to compensation
for expenses and loss of interest resulting from the nonpayment and may recover consequential
damages if the obligated bank refuses to pay after receiving notice of particular
circumstances giving rise to the damages.
3. Expenses or consequential damages under subsection 2 are not recoverable if the
refusal of the obligated bank to pay occurs because the bank suspends payments, the
obligated bank asserts a claim or defense of the bank that it has reasonable grounds
to believe is available against the person entitled to enforce the instrument, the
obligated bank has a reasonable doubt whether the person demanding payment is the
person entitled to enforce the instrument, or payment is prohibited by law.
FindLaw Codes may not reflect the most recent version of the law in your jurisdiction. Please verify the status of the code you are researching with the state legislature or via Westlaw before relying on it for your legal needs.
Was this helpful?
Welcome to FindLaw's Cases & Codes
A free source of state and federal court opinions, state laws, and the United States Code. For more information about the legal concepts addressed by these cases and statutes, visit FindLaw's Learn About the Law.