70A-3-411 - Refusal to pay cashier's checks, teller's checks, and certified checks.
70A-3-411. Refusal to pay cashier's checks, teller's checks, and certified checks.
(1) In this section, "obligated bank" means the acceptor of a certified check or the issuerof 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 personasserting the right to enforce the check is entitled to compensation for expenses and loss ofinterest resulting from the nonpayment and may recover consequential damages if the obligatedbank 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 therefusal of the obligated bank to pay occurs because the bank suspends payments, the obligatedbank asserts a claim or defense of the bank that it has reasonable grounds to believe is availableagainst the person entitled to enforce the instrument, the obligated bank has a reasonable doubtwhether the person demanding payment is the person entitled to enforce the instrument, orpayment is prohibited by law.
Repealed and Re-enacted by Chapter 237, 1993 General Session