(a) 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.
(b) Expenses or consequential damages under (a) of this section are not recoverable if
(1) the refusal of the obligated bank to pay occurs because the bank suspends payments;
(2) 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;
(3) the obligated bank has a reasonable doubt whether the person demanding payment is the person entitled to enforce the instrument; or
(4) payment is prohibited by law.
(c) 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.
Section: Previous 45.03.404 45.03.405 45.03.406 45.03.407 45.03.408 45.03.409 45.03.410 45.03.411 45.03.412 45.03.413 45.03.414 45.03.415 45.03.416 45.03.417 45.03.418 NextLast modified: November 15, 2016