Yes. Banks are regulated by the "Uniform Commercial Code". This is a very lengthly Bank Rule Book. This book limits the reasons Banks can use to place a Stop Payment Order on their Cashier's Checks. This is because Cashier's Checks represent guaranteed funds. If stop payments could be easily placed on all Cashier's Checks, the Cashiers Check would lose it's Guaranteed status, and therefore be pointless. Unfortunately, a customer losing the check is not an applicable reason for a Stop Payment Order. If the check the customer lost does get presented to the Bank, the Bank must pay the check (as long as it is endorsed properly). They would also have to pay the reissued check. If that would happen, without a surity bond, the Bank would be at a loss for the cost of one check. With the surity bond, the Bank can collect the value of one of the checks. So, Banks need a Surity Bond to prevent them from assuming the risk of paying a check twice.
A cashiers check is far safer than a personal check, whether you are the payee or the payor. If you are the payee (the one receiving the check) and receive a personal check that is insufficient, you have very little recourse in obtaining the money owed to you. If you are paid with a cashiers check, it is guaranteed funds, since the bank will only issue the check with available funds (meaning it has to be paid for with cash or purchased at the person's bank, where the bank can verify there are sufficient funds in their account to cover the amount of the check). If you are the payor (the one paying by check), the bank can trace the check for you if the person to whom you were paying loses it or says they never received it. Also, if the check does get lost, it will be far more difficult for someone to forge their signature to it and cash it. Also, a cashiers check does not have as much personal identification on it like a personal check does (address, checking account number, etc.).
Assuming you try depositing a cashiers check from another bank into your bank account, it is unlikely to clear that same day. Even if your bank makes the funds available to you in a day or two, even that does not mean the check has necessarily cleared. I asked this question of an employee at a major bank at which I have an account (because I want to sell some large-ticket items for substantial amounts of money to a private party). She basically said, when the cashiers check actually clears depends on the bank that issued it. Even if your bank makes the funds available to you within a couple of days due to regulations imposed on them, the check may not actually clear (due to fraud or whatever). Your best bet is to physically visit the issuing bank, show them ID to prove who you are, and get them to cash the check immediately. They will then remove the funds from the account in question, and issue you a check from the bank directly. That new check will be essentially as good as cash.
No. A Stop Payment can be issued on a check only before it is being submitted for clearance. If the person to whom you have issued the check has not yet deposited it into his account or if you have lost the check itself, you can issue a stop payment on it. But, if the check has already been deposited and returned by the bank because of lack of funds, you cannot issue stop payment.
The person who issued the cheque can issue the stop payment on the cheque. As long as the check isn't submitted for payment yet, you can issue the stop payment request. But, if the check is already paid the bank will not accept the stop payment. A point to note is that, the person to whom you gave the check can prosecute you legally for doing so because he wont get paid for the check
It depends: 1. Yes it is Illegal if - you owe someone money and used the check to pay them for that. If you issue a stop payment the check will not be paid and the person to whom you issued this check can legally sue you for that 2. No it is not Illegal if - you have lost the check and want to ensure that whoever finds it cannot cash it without your approval
A bank issues a cashiers check,on behalf of a depositor, by setting funds aside from the depositor's account.
Yes. If the bid spread is significant, and or if the financial situation of the contractor changes beyond the comfort level of the surety between the bid and award, or if the final bond is contingent on receiving info.
If you are asking what are the benefits built into a surety bond then the answer is the surety bond guarantees a specific performance or amount up to the penalty amount of the bond. If you are asking what the benefits of surety are then surety provides the recipient of the surety bond a level of assurance that the person or business entity providing the bond is qualified to perform the required act. This is accomplished by the surety's investigation of the Principal and evidenced by their agreement to issue the surety bond that encumbers the surety to the amount of the bond's penalty.
Its actually not correct to issue cheques without issue date. You need to talk to the person who issued it and ask him to enter the date.
If you are asking what are the benefits built into a surety bond then the answer is the surety bond guarantees a specific performance or amount up to the penalty amount of the bond. If you are asking what the benefits of surety are then surety provides the recipient of the surety bond a level of assurance that the person or business entity providing the bond is qualified to perform the required act. This is accomplished by the surety's investigation of the Principal and evidenced by their agreement to issue the surety bond that encumbers the surety to the amount of the bond's penalty.
A cashiers check is far safer than a personal check, whether you are the payee or the payor. If you are the payee (the one receiving the check) and receive a personal check that is insufficient, you have very little recourse in obtaining the money owed to you. If you are paid with a cashiers check, it is guaranteed funds, since the bank will only issue the check with available funds (meaning it has to be paid for with cash or purchased at the person's bank, where the bank can verify there are sufficient funds in their account to cover the amount of the check). If you are the payor (the one paying by check), the bank can trace the check for you if the person to whom you were paying loses it or says they never received it. Also, if the check does get lost, it will be far more difficult for someone to forge their signature to it and cash it. Also, a cashiers check does not have as much personal identification on it like a personal check does (address, checking account number, etc.).
Assuming you try depositing a cashiers check from another bank into your bank account, it is unlikely to clear that same day. Even if your bank makes the funds available to you in a day or two, even that does not mean the check has necessarily cleared. I asked this question of an employee at a major bank at which I have an account (because I want to sell some large-ticket items for substantial amounts of money to a private party). She basically said, when the cashiers check actually clears depends on the bank that issued it. Even if your bank makes the funds available to you within a couple of days due to regulations imposed on them, the check may not actually clear (due to fraud or whatever). Your best bet is to physically visit the issuing bank, show them ID to prove who you are, and get them to cash the check immediately. They will then remove the funds from the account in question, and issue you a check from the bank directly. That new check will be essentially as good as cash.
Yes, a license is required to issue bonds in Texas. The Texas Securities Act requires individuals or entities engaged in the business of issuing or underwriting securities, including bonds, to be licensed as broker-dealers or agents with the Texas State Securities Board. Failure to obtain the necessary license can result in penalties and legal consequences.
No. A Stop Payment can be issued on a check only before it is being submitted for clearance. If the person to whom you have issued the check has not yet deposited it into his account or if you have lost the check itself, you can issue a stop payment on it. But, if the check has already been deposited and returned by the bank because of lack of funds, you cannot issue stop payment.
You must contact the Maker (the persos or company who issued the check) and ask them to re-issue the check to a living Payee or the the estate of the dead payee.
The only thing you can do is, you can request the original person who issued you the check to re-issue you a fresh check. After the expiry date (usually 90 days from date of issue) the check is worthless and has no value. So the only way you can get paid is if the issuer of the check gives you a new one.
Most license & permit surety bonds will run an average of 1-3% premium depending on the type and bond amount however if credit is an issue they can get quite a bit more expensive