"CLEARED CHECK" Stopped?

[skanee]

I sold my Rolex watch on eBay for $4024
(incl. shipping). The buyer sent me a
Tellers/Cashiers Check from his credit
union he said would be treated as "Cash."

I cashed the check and paid bills with it.

Now the Buyer e-mailed me he put a "Stop
Payment" on the check, because he did not like or want the watch.

Today, my credit union called and threatened
to call the police if I didn't deposit
the $4000. I thought once you deposited
"Clear Funds", a check cannot be "Stopped".

What does the Law say?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by skanee:
I sold my Rolex watch on eBay for $4024
(incl. shipping). The buyer sent me a
Tellers/Cashiers Check from his credit
union he said would be treated as "Cash."

I cashed the check and paid bills with it.

Now the Buyer e-mailed me he put a "Stop
Payment" on the check, because he did not like or want the watch.

Today, my credit union called and threatened
to call the police if I didn't deposit
the $4000. I thought once you deposited
"Clear Funds", a check cannot be "Stopped".

What does the Law say?<HR></BLOCKQUOTE>


My response:

I don't think your negotiable instrument was a check; rather, it sounds to me that it was, perhaps, a "draft." A draft, drawn on a bank's account, is conditionally paid by the drawing bank when the "payor" gives his bank permission to make the funds available to you. A "check" always says, "Pay to the Order of" and a "draft" merely says, "Pay."

I hope you kept a copy of the instrument, so you can show it to your attorney for further advice.

IAAL


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[This message has been edited by I AM ALWAYS LIABLE (edited March 14, 2000).]

 

[rocket57]

In regards to your banking situation.

You should research the following areas of interest:

Did you make a photo copy of the tellers check you cashed? Did the item you cashed say it was a check?

According to Blacks Laws Dictionary a check is also a Draft. It must contain the phrase "Pay to the order of". Did the check you cashed say that?

Another important event to considor is the banking process itself. The payor bank has until midnight of the day it receives the check to honor of dishonor the check and until midnight of the next business day to return it with notice of dishonor. If the payor bank fails to do this, they are responsible for the face value of the check.

I have case law on this subject, and other legal terms to considor. you can contact me at [email protected].