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What is the rule on placing a stop payment on an official check?
Wiki User
∙ 9y ago
The bank cannot revoke its acceptance of an official check by stopping payment. Banks often pre-print a notice on the customer's copy of a cashiers check indicating it will not be replaced for 90 days if it is lost or stolen.
Wiki User
∙ 9y ago
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It depends on circumstances and the intentions of the person. It is okay to stop a check if: a) If you are stopping a check with the assistance of a Court Order or permission, b) If you stop a check with the knowledge and express permission of the other party in order to defer the payment or to increase/decrease the amount, or they have lost the check and asked for it to be reissued. c) Clerical errors such as you issued more than one check erroneously against the same item purchased, or mailed it to the wrong address. d) The other party has failed to provide the value promised in exchanged for the money the check represents. It is not legal to stop a check: a) If you stop payment on a check with an intention of not paying the other person it is a crime and you will be liable for prosecution. It is fraud and theft. As a rule, you can issue a check only when there is sufficient finance available and it is an agreement to pay equivalent money to the recipient.
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