Also known as: remitters · estate restoration · title revival
Written by attorneys · grounded in primary & secondary sources — see below
A person who purchases an instrument from its issuer if the instrument is payable to an identified person other than the purchaser.
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Roger Ramirez buys a cashier's check from First Bank payable to Rosa Ruiz. He hands the check directly to Rosa without signing it. Rosa presents the check for payment and receives the funds because the transfer qualifies as negotiation by the remitter.
Ruby Rivera purchases a cashier's check from Allegiant Bank made payable to a third party. After the check is paid over a forged indorsement, Ruby sues the depositary bank for breach of warranty. The court dismisses the claim because a remitter holds no direct rights against that bank.
A remitter is the purchaser of an instrument from its issuer when the instrument names a payee other than the purchaser. This status arises most often with cashier's checks and teller's checks bought for a third-party payee.
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Negotiation by a remitter is excepted from the usual requirement of indorsement by the holder. Transfer of possession alone by the remitter is sufficient to make the identified payee the holder.
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A remitter generally holds no warranty or conversion claim against a depositary bank that pays the check. The remitter's recourse lies against the issuing bank under contract principles rather than UCC transfer warranties.
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