§ 6A-3-411 - Refusal to pay cashier's checks, teller's checks, and certified checks. - Rhode Island Statutes

SECTION 6A-3-411

   § 6A-3-411  Refusal to pay cashier'schecks, teller's checks, and certified checks. – (a) In this section, "obligated bank" means the acceptor of a certified checkor the issuer of a cashier's check or 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 a teller's check, or(iii) refuses to pay a dishonored teller's check, the person asserting theright to enforce the check is entitled to compensation for expenses and loss ofinterest resulting from the nonpayment and may recover consequential damages ifthe obligated bank refuses to pay after receiving notice of particularcircumstances giving rise to the damages.

   (c) Expenses or consequential damages under subsection (b)are not recoverable if the refusal of the obligated bank to pay occurs because(i) the bank suspends payments, (ii) the obligated bank asserts a claim ordefense of the bank that it has reasonable grounds to believe is availableagainst the person entitled to enforce the instrument, (iii) the obligated bankhas a reasonable doubt whether the person demanding payment is the personentitled to enforce the instrument, or (iv) payment is prohibited by law.