§490:3-411  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 (i)
refuses to pay a cashier'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 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 (i) the bank suspends payments, (ii) 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, (iii) the
obligated bank has a reasonable doubt whether the person demanding payment is
the person entitled to enforce the instrument, or (iv) payment is prohibited by
law. [L 1991, c 118, pt of §1]