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Can you summarize IACO 554.3411?
UNIFORM COMMERCIAL CODE > Refusal to pay cashiers checks, tellers checks, and certified checks.
Short Summary
This section of the Iowa Code, specifically under the Uniform Commercial Code, governs the refusal to pay cashiers checks, tellers checks, and certified checks. The term ‘obligated bank’ refers to the acceptor of a certified check or the issuer of a cashiers check or tellers check bought from the issuer. If an obligated bank wrongfully refuses to pay a cashiers check or certified check, stops payment of a tellers check, or refuses to pay a dishonored tellers check, the person asserting the right to enforce the check is entitled to compensation for expenses and loss of interest resulting from the nonpayment. They may also recover consequential damages if the obligated bank refuses to pay after receiving notice of particular circumstances giving rise to the damages. However, expenses or consequential damages are not recoverable if the refusal of the obligated bank to pay occurs due to bank suspension, the bank’s claim or defense against the person entitled to enforce the instrument, doubt about the person demanding payment, or if payment is prohibited by law.
Whom does it apply to?
Obligated banks, persons asserting the right to enforce the check
What does it govern?
Refusal to pay cashiers checks, tellers checks, and certified checks
What are exemptions?
Refusal of payment due to bank suspension, bank's claim or defense against the person entitled to enforce the instrument, doubt about the person demanding payment, payment prohibited by law
What are the Penalties?
No specific penalties mentioned
Jurisdiction
Iowa