400.3-411. Refusal to pay cashier's checks, teller's checks, and certified checks. - Missouri Statutes

Refusal to pay cashier's checks, teller's checks, and certifiedchecks.

400.3-411. (a) In this section, "obligated bank" means theacceptor of a certified check or the issuer of a cashier's checkor teller's check bought from the issuer.

(b) If the obligated bank wrongfully (i) refuses to pay acashier's check or certified check, (ii) stops payment of ateller's check, or (iii) refuses to pay a dishonored teller'scheck, the person asserting the right to enforce the check isentitled to compensation for expenses and loss of interestresulting from the nonpayment and may recover consequentialdamages if the obligated bank refuses to pay after receivingnotice 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 payoccurs because (i) the bank suspends payments, (ii) the obligatedbank asserts a claim or defense of the bank that it hasreasonable grounds to believe is available against the personentitled to enforce the instrument, (iii) the obligated bank hasa reasonable doubt whether the person demanding payment is theperson entitled to enforce the instrument, or (iv) payment isprohibited by law.

(L. 1992 S.B. 448)

*No continuity with § 400.3-411 as repealed by L. 1992 S.B. 448.