Also known as: teller's check · tellers check · teller check · teller's checks
Written by attorneys · grounded in primary & secondary sources — see below
A draft drawn by a bank on another bank and payable on demand. The instrument qualifies as a check even when labeled differently on its face.
Tara Tran fell behind on her mortgage payments. Two days before the scheduled foreclosure sale, she obtained a teller's check from her credit union for the exact cure amount listed in the lender's notice and delivered it to the servicer. The servicer accepted the instrument and halted the sale.
Thaddeus Tran presented a teller's check at a casino to cover gambling markers. The casino later discovered the check had been altered after issuance. The bank that drew the teller's check refused payment on the altered instrument.
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A borrower may cure a monetary default by tendering payment in cash or by cashier's check, certified check, teller's check, or equivalent obligation of a bank, or by electronic-funds transfer or money order.
An action to enforce the obligation of the issuer of a teller's check must be commenced within three years after demand for payment is made to the issuer.
The remitter or payee of a teller's check may assert a claim by delivering a declaration of loss to the obligated bank, provided the communication is received in time to act before payment.
Yes. A teller's check is expressly included in the definition of check, which covers drafts payable on demand drawn on a bank as well as cashier's checks and teller's checks.