Texas Business & Commerce Code - Section 3.312. Lost, Destroyed, Or Stolen Cashier's Check, Teller's Check, Or Certified Check
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Texas Laws > Business & Commerce Code > Texas Business & Commerce Code - Section 3.312. Lost, Destroyed, Or Stolen Cashier's Check, Teller's Check, Or Certified Check
Section: 3.305 3.306 3.307 3.308 3.309 3.310 3.311 3.312 3.401 3.402 3.403 3.404 3.405 3.406 3.407
§ 3.312. LOST, DESTROYED, OR STOLEN CASHIER'S CHECK,
TELLER'S CHECK, OR CERTIFIED CHECK. (a) In this section:
(1) "Check" means a cashier's check, teller's check,
or certified check.
(2) "Claimant" means a person who claims the right to
receive the amount of a cashier's check, teller's check, or
certified check that was lost, destroyed, or stolen.
(3) "Declaration of loss" means a statement, made in a
record under penalty of perjury, to the effect that:
(A) the declarer lost possession of a check;
(B) the declarer is the drawer or payee of the
check, in the case of a certified check, or the remitter or payee of
the check, in the case of a cashier's check or teller's check;
(C) the loss of possession was not the result of a
transfer by the declarer or a lawful seizure; and
(D) the declarer cannot reasonably obtain
possession of the check because the check was destroyed, its
whereabouts cannot be determined, or it is in the wrongful
possession of an unknown person or a person that cannot be found or
is not amenable to service of process.
(4) "Obligated bank" means the issuer of a cashier's
check or teller's check or the acceptor of a certified check.
(b) A claimant may assert a claim to the amount of a check by
a communication to the obligated bank describing the check with
reasonable certainty and requesting payment of the amount of the
check, if (i) the claimant is the drawer or payee of a certified
check or the remitter or payee of a cashier's check or teller's
check, (ii) the communication contains or is accompanied by a
declaration of loss of the claimant with respect to the check, (iii)
the communication is received at a time and in a manner affording
the bank a reasonable time to act on it before the check is paid, and
(iv) the claimant provides reasonable identification if requested
by the obligated bank. Delivery of a declaration of loss is a
warranty of the truth of the statements made in the declaration. If
a claim is asserted in compliance with this subsection, the
following rules apply:
(1) The claim becomes enforceable at the later of (i)
the time the claim is asserted, or (ii) the 90th day following the
date of the check, in the case of a cashier's check or teller's
check, or the 90th day following the date of the acceptance, in the
case of a certified check.
(2) Until the claim becomes enforceable, it has no
legal effect and the obligated bank may pay the check or, in the
case of a teller's check, may permit the drawee to pay the check.
Payment to a person entitled to enforce the check discharges all
liability of the obligated bank with respect to the check.
(3) If the claim becomes enforceable before the check
is presented for payment, the obligated bank is not obliged to pay
(4) When the claim becomes enforceable, the obligated
bank becomes obliged to pay the amount of the check to the claimant
if payment of the check has not been made to a person entitled to
enforce the check. Subject to Section 4.302(a)(1), payment to the
claimant discharges all liability of the obligated bank with
respect to the check.
(c) If the obligated bank pays the amount of a check to a
claimant under Subsection (b)(4) and the check is presented for
payment by a person having rights of a holder in due course, the
claimant is obliged to:
(1) refund the payment to the obligated bank if the
check is paid; or
(2) pay the amount of the check to the person having
rights of a holder in due course if the check is dishonored.
(d) If a claimant has the right to assert a claim under
Subsection (b) and is also a person who is entitled to enforce a
cashier's check, teller's check, or certified check that is lost,
destroyed, or stolen, the claimant may assert rights with respect
to the check under either this section or Section 3.309.
Added by Acts 1995, 74th Leg., ch. 921, § 1, eff. Jan. 1, 1996.
Amended by Acts 2005, 79th Leg., ch. 95, § 7, eff. Sept. 1, 2005.
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Last modified: August 11, 2007