47-3411. Refusal to pay cashier's checks, teller's checks and certified checks
A. 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.
B. 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.
C. Expenses or consequential damages under subsection B are not recoverable if the refusal of the obligated bank to pay occurs because:
1. 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.
Section: Previous 47-3404 47-3405 47-3406 47-3407 47-3408 47-3409 47-3410 47-3411 47-3412 47-3413 47-3414 47-3415 47-3416 47-3417 47-3418 NextLast modified: October 13, 2016