70A-3-312 - Lost, destroyed, or stolen cashier's check, teller's check, or certified check.
70A-3-312. Lost, destroyed, or stolen cashier's check, teller's check, or certifiedcheck.
(1) In this section:
(a) "Check" means a cashier's check, teller's check, or certified check.
(b) "Claimant" means a person who claims the right to receive the amount of a cashier'scheck, teller's check, or certified check that was lost, destroyed, or stolen.
(c) "Declaration of loss" means a written statement, bearing a notification to the effectthat false statements made in the written statement are punishable by law, to the effect that:
(i) the declarer lost possession of a check;
(ii) the declarer is the drawer or payee of the check, in the case of a certified check, or theremitter or payee of the check, in the case of a cashier's check or teller's check;
(iii) the loss of possession was not the result of a transfer by the declarer or a lawfulseizure; and
(iv) the declarer cannot reasonably obtain possession of the check because the check wasdestroyed, its whereabouts cannot be determined, or it is in the wrongful possession of anunknown person or a person that cannot be found or is not amenable to service of process.
(d) "Obligated bank" means the issuer of a cashier's check or teller's check or theacceptor of a certified check.
(2) (a) A claimant may assert a claim to the amount of a check by a communication tothe obligated bank describing the check with reasonable certainty and requesting payment of theamount of the check, if:
(i) the claimant is the drawer or payee of a certified check or the remitter or payee of acashier's check or teller's check;
(ii) the communication contains or is accompanied by a declaration of loss of theclaimant with respect to the check;
(iii) the communication is received at a time and in a manner affording the bank areasonable time to act on it before the check is paid; and
(iv) the claimant provides reasonable identification if requested by the obligated bank.
(b) (i) Delivery of a declaration of loss is a warranty of the truth of the statements madein the declaration.
(ii) If a claim is asserted in compliance with this Subsection (2), the claim becomesenforceable at the later of:
(A) the time the claim is asserted; or
(B) the 90th day following the date of the check, in the case of a cashier's check or teller'scheck, or the 90th day following the date of the acceptance, in the case of a certified check.
(c) Until the claim becomes enforceable, it has no legal effect and the obligated bankmay pay the check or, in the case of a teller's check, may permit the drawee to pay the check. Payment to a person entitled to enforce the check discharges all liability of the obligated bankwith respect to the check.
(d) If the claim becomes enforceable before the check is presented for payment, theobligated bank is not obliged to pay the check.
(e) When the claim becomes enforceable, the obligated bank becomes obliged to pay theamount of the check to the claimant if payment of the check has not been made to a personentitled to enforce the check. Subject to Subsection 70A-4-302(1)(a), payment to the claimantdischarges all liability of the obligated bank with respect to the check.
(3) If the obligated bank pays the amount of a check to a claimant under Subsection(2)(e) and the check is presented for payment by a person having rights of a holder in due course,the claimant is obliged to:
(a) refund the payment to the obligated bank if the check is paid; or
(b) pay the amount of the check to the person having rights of a holder in due course ifthe check is dishonored.
(4) If a claimant has the right to assert a claim under Subsection (2) and is also a personentitled to enforce a cashier's check, teller's check, or certified check that is lost, destroyed, orstolen, the claimant may assert rights with respect to the check either under this section orSection 70A-3-309.
(5) This section does not apply to checks that have become the property of the statepursuant to Title 67, Chapter 4a, Unclaimed Property Act.
Amended by Chapter 306, 2007 General Session