Also known as: bank certification · banks certification · bank's certification · certified check · bank certification of check
Written by attorneys · grounded in primary & secondary sources — see below
A bank's acceptance of a check drawn on it. The acceptance creates an irrevocable promise by the bank to pay the instrument when presented and discharges the drawer from liability on the check.
Belinda Baxter fell behind on her mortgage payments. Two days before the scheduled foreclosure sale she obtained a certified check from her bank for the full cure amount and delivered it to the lender. The lender accepted the instrument and halted the sale because the bank's certification supplied the required form of payment under the statute.
Bernard Bass purchased a new car from Benson Motors. The sales contract stated that payment must be made by cash or certified check only on delivery. Bernard presented a personal check at closing. The dealer refused it and insisted on a certified check because the contract language required the bank's certification to complete the transaction.
Select any source to read its text and confirm it supports the definition.
The bank's certification discharges the drawer from liability on the check regardless of when or by whom the acceptance was obtained. The bank becomes primarily liable to pay the instrument.
Supporting sources
Yes. The statute expressly lists a certified check as an acceptable method of tendering payment to cure a monetary default when delivered after notice and not later than two days before the foreclosure sale.
Supporting sources
Yes. The drawee bank has no obligation to certify a check and its refusal does not constitute dishonor of the instrument.
Supporting sources
Certification occurs when the drawee bank accepts its own customer's check. A cashier's check or teller's check is issued directly by the bank as drawer and therefore carries the bank's primary obligation from the moment of issuance.
Supporting sources
…below these clauses and immediately above the signature line, and in 12 point block type, the following appears: “CASH OR CERTIFIED CHECK ONLY ON DELIVERY.” On the left side, just opposite and in the same style type as the two quoted clauses, but in eight point size, this statement is set out: “This agreement shall not…