§ 25-3-411. Refusal to pay cashier's checks, teller's checks, and certified checks.
§25‑3‑411. Refusal to pay cashier's checks, teller's checks, andcertified checks.
(a) In this section,"obligated bank" means the acceptor of a certified check or theissuer of a cashier's check or teller's check bought from the issuer.
(b) If the obligatedbank 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 dishonoredteller's check, the person asserting the right to enforce the check is entitledto compensation for expenses and loss of interest resulting from the nonpaymentand may recover consequential damages if the obligated bank refuses to payafter receiving notice of particular circumstances giving rise to the damages.
(c) Expenses orconsequential damages under subsection (b) of this section are not recoverableif the refusal of the obligated bank to pay occurs because (i) the banksuspends payments, (ii) the obligated bank asserts a claim or defense of thebank that it has reasonable grounds to believe is available against the personentitled to enforce the instrument, (iii) the obligated bank has a reasonabledoubt whether the person demanding payment is the person entitled to enforcethe instrument, or (iv) payment is prohibited by law. (1995,c. 232, s. 1.)