Cashier's Check Law and Legal Definition

Cashier’s Check is a check guaranteed by a bank. The check is issued by the authorized officer of a bank and is directed to another person. The check evidences the fact that the payee is authorized to demand and receive upon presentation from the bank the amount of money represented by the check. Unique feature of a cashier check is that funds are not drawn from personal account. A cashier's check is drawn against the funds of the institution itself. Cashier’s Check differs from a certified check, which is drawn against the funds in a specific depositor's account. Cashier's checks feature the name of the issuing bank on the face of the check. The check gives a guarantee of payment to the receiver of the check. Usually the name of the issuing bank can be seen in the upper left-hand corner or upper center of the check. Cashier check has less vulnerability to counterfeit items. A cashier check is well protected through watermark, security thread or color shifting ink. Pursuant to Article III of the Uniform Commercial Code a cashier's check is effective as a note of the bank. Moreover, Regulation CC of the Federal Reserve recognizes a cashier check as guaranteed fund.

The following is an example of a federal law defining cashier's check:

According to 12 USCS § 4001 (5), [Title 12. Banks and Banking; Chapter 41. Expedited Funds Availability] the term cashier's check means “any check which--

(A) is drawn on a depository institution;

(B) is signed by an officer or employee of such depository institution; and

(C) is a direct obligation of such depository institution.”