Check Handling, Cashier’s Check: Lost Cashier's Check
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Our collections department received a draft on one of our car dealers from another local bank back in May. We mailed them a cashier's check the next day. They called about 2 3 weeks later and indicated that they had not received the check. We asked them to give it a little more time and they still have not received the check. I want to work with them and not require them to purchase a bond since they are a bank. At the same time I want to protect our bank. What can we do? Is there some sort of affidavit of indemnity that they could sign for us?
Answer:
As you know, the "lost" cashier's check processes require a wait of 90 days! (see Section 3.312 of Bus & Commerce Code)
If you want to accommodate this bank, request a "hold harmless" (which is really an indemnity) from the other bank. Get assurances that they will put a hold on that account to make sure that the cashier's check is not presented twice by the same party! Insurance companies no longer sell lost instrument bonds for cashiers checks because of UCC 3-312.
If you want to accommodate this bank, request a "hold harmless" (which is really an indemnity) from the other bank. Get assurances that they will put a hold on that account to make sure that the cashier's check is not presented twice by the same party! Insurance companies no longer sell lost instrument bonds for cashiers checks because of UCC 3-312.