47-3411. Refusal to pay cashier's checks,
teller's checks and certified checks
A. In this section, "obligated bank" means the acceptor of a certified check or the
issuer of a cashier's check or teller's check bought from the issuer.
B. If the obligated bank wrongfully refuses to pay a cashier's check or certified
check, stops payment of a teller's check or refuses to pay a dishonored teller's check,
the person asserting the right to enforce the check is entitled to compensation for
expenses and loss of interest resulting from the nonpayment and may recover consequential
damages if the obligated bank refuses to pay after receiving notice 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 pay occurs because:
1. The bank suspends payments;
2. The obligated bank asserts a claim or defense of the bank that it has reasonable
grounds to believe is available against the person entitled to enforce the instrument;
3. The obligated bank has a reasonable doubt whether the person demanding payment
is the person entitled to enforce the instrument; or
4. Payment is prohibited by law.
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