554.3411 Refusal to pay cashier’s checks, teller’s checks, and certified checks. 1. In this section, 'obligated bank' means the acceptor of a certified check or the issuer of a cashier’s check or teller’s check bought from the issuer. 2. If the obligated bank wrongfully refuses to pay a cashier’s check or certified check, stops payment of a teller’s check, or refuses to pay a dishonored teller’s check, the personasserting the right to enforce the check is entitled to compensation for expenses and lossof interest resulting from the nonpayment and may recover consequential damages if theobligated bank refuses to pay after receiving notice of particular circumstances giving rise tothe damages. 3. Expenses or consequential damages under subsection 2 are not recoverable if the refusal of the obligated bank to pay occurs because the bank suspends payments, theobligated bank asserts a claim or defense of the bank that it has reasonable grounds tobelieve is available against the person entitled to enforce the instrument, the obligated bankhas a reasonable doubt whether the person demanding payment is the person entitled toenforce the instrument, or payment is prohibited by law. son entitled to enforce the instrument, the obligated bankhas a reasonable doubt whether the person demanding payment is the person entitled toenforce the instrument, or payment is prohibited by law. 94 Acts, ch 1167, §58, 121, 122; 2013 Acts, ch 30, §261 Sat Dec 23 01:56:57 2023 Iowa Code 2024, Section 554.3411 (25, 0)
Iowa Legal Code