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Thread: Cashiers check

  1. #1
    VSPeck1 is offline Member
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    Cashiers check

    What is the name of your state (only U.S. law)? Kentucky
    My daughter is settling her deceased father's "estate". In KY estates with a value of less than $15000 are not subject to probate so the bank where he had his account issued her a cashiers check for the balance of his account. (Somewhere around $13000). They offered her cash but she did not want to walk around with that much cash. After she deposited the cashiers check in her bank and proceeded to pay his bills (funeral costs etc.) she found that the bank that had issued her the cashiers check was not honoring the check and subsequently her bank has now "frozen" her account. It was her belief and mine that a cashiers check was the same as cash and for the bank to withhold the check is crazy. She now has checks bouncing like crazy and is about to go out of her mind. Any idea on how to handle this one?
  2. #2
    Antigone* is offline Senior Member
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    Quote Originally Posted by VSPeck1 View Post
    What is the name of your state (only U.S. law)? Kentucky
    My daughter is settling her deceased father's "estate". In KY estates with a value of less than $15000 are not subject to probate so the bank where he had his account issued her a cashiers check for the balance of his account. (Somewhere around $13000). They offered her cash but she did not want to walk around with that much cash. After she deposited the cashiers check in her bank and proceeded to pay his bills (funeral costs etc.) she found that the bank that had issued her the cashiers check was not honoring the check and subsequently her bank has now "frozen" her account. It was her belief and mine that a cashiers check was the same as cash and for the bank to withhold the check is crazy. She now has checks bouncing like crazy and is about to go out of her mind. Any idea on how to handle this one?
    What reason did the bank give for dishonoring the cashiers' check?
  3. #3
    antrc170 is offline Member
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    I don't understand why her bank would freeze her account if the cashiers check was denied. She needs to speak to her bank manager to unfreeze her account, and find out from the issuing bank why the check was dishonored. Unless the cashiers check was fraudulently used, then you would appear to have a legal issue against the issuing bank. You can clearly show damages in the form of fees and time spent clearing up the matter.

    Cashiers checks are dealt with under federal code 12 USC 4001 as such:
    The term "cashier's check" means any check which -
    (A) is drawn on a depository institution;
    (B) is signed by an officer or employee of such depository
    institution; and
    (C) is a direct obligation of such depository institution.

    It is not drawn against an account at the bank, but rather it is drawn against the bank itself. It is as good as cash because I know of no reasonable explanation, excpet fraud, where the check would be denied.
  4. #4
    Antigone* is offline Senior Member
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    Quote Originally Posted by antrc170 View Post
    I don't understand why her bank would freeze her account if the cashiers check was denied. She needs to speak to her bank manager to unfreeze her account, and find out from the issuing bank why the check was dishonored. Unless the cashiers check was fraudulently used, then you would appear to have a legal issue against the issuing bank. You can clearly show damages in the form of fees and time spent clearing up the matter.

    Cashiers checks are dealt with under federal code 12 USC 4001 as such:
    The term "cashier's check" means any check which -
    (A) is drawn on a depository institution;
    (B) is signed by an officer or employee of such depository
    institution; and
    (C) is a direct obligation of such depository institution.

    It is not drawn against an account at the bank, but rather it is drawn against the bank itself. It is as good as cash because I know of no reasonable explanation, excpet fraud, where the check would be denied.
    I want to make sure there isn't a "hold," instead of a "freeze" so I asked the OP for more information. Since the OP is a third party we might not have all the correct information.
  5. #5
    antrc170 is offline Member
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    Quote Originally Posted by Antigone*of*Greece View Post
    I want to make sure there isn't a "hold," instead of a "freeze" so I asked the OP for more information. Since the OP is a third party we might not have all the correct information.
    Of course. I just tried to answer based on the information provided.
  6. #6
    VSPeck1 is offline Member
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    I just talked to my daughter and her bank had written her a letter telling her the bank that issued the check would not honor it. When she went to that bank today, they proved to her that they had released the funds March 10 but for whatever reason her bank had placed an extended hold on the check. The funds had shown as "available" when she checked on-line and then about an hour or so later, they showed as "unavailable."
  7. #7
    Antigone* is offline Senior Member
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    Quote Originally Posted by VSPeck1 View Post
    I just talked to my daughter and her bank had written her a letter telling her the bank that issued the check would not honor it. When she went to that bank today, they proved to her that they had released the funds March 10 but for whatever reason her bank had placed an extended hold on the check. The funds had shown as "available" when she checked on-line and then about an hour or so later, they showed as "unavailable."
    The bank placed an uncollected funds hold. That is not the same as freezing the account. How did she make the deposit ~ with a teller or at the ATM?

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