(1) This section applies if a cashier's check, teller's check or
certified check is not presented for payment on or before ninety days
from the date of issuance of a cashier's check or teller's check, or the
date of certification of a certified check.
(2) The remitter or payee that causes payment of a cashier's check,
teller's check or certified check to be stopped pursuant to Section
4--403 (2) engages that upon dishonor of the check and any necessary
notice of dishonor he will pay, subject to defenses, the amount of the
check to any subsequent holder or indorser who takes it up.
(3) When a stop payment order pursuant to Section 4--403 (2) becomes
effective the obligated bank shall refund the amount of the item to the
remitter or payee that issued the stop payment order, and shall have no
further liability on the item.
Structure New York Laws
Article 4 - Bank Deposits and Collections
Part 4 - Relationship Between Payor Bank and Its Customer
4-401 - When Bank May Charge Customer's Account.
4-402 - Bank's Liability to Customer for Wrongful Dishonor.
4-403 - Customer's Right to Stop Payment; Burden of Proof of Loss.
4-404 - Bank Not Obligated to Pay Check More Than Six Months Old.
4-405 - Death or Incompetence of Customer.
4-406 - Customer's Duty to Discover and Report Unauthorized Signature or Alteration.
4-407 - Payor Bank's Right to Subrogation on Improper Payment.