Also known as: teller’s check · tellers check · tellers checks · teller check · teller checks · teller's check
Written by attorneys · grounded in primary & secondary sources — see below
A negotiable instrument drawn by one bank on another bank or payable through or at a bank. It functions as a reliable payment vehicle because the issuing bank is obligated to honor it upon presentment.
Taliah Tang fell behind on her mortgage payments. Two days before the scheduled foreclosure sale the servicer sent a cure notice listing the exact amount due. Taliah obtained a teller's check for that amount and tendered it to the servicer. Because the statute accepts a teller's check as valid payment the tender cured the monetary default and halted the sale.
Tiana Tan purchased a teller's check from her bank to pay a supplier. When the check was later lost she submitted a declaration of loss under the UCC rules governing teller's checks. The bank treated the instrument according to the statutory definition that places teller's checks alongside cashier's checks and certified checks for enforcement and claim purposes.
Select any source to read its text and confirm it supports the definition.
Yes. The statute expressly lists a teller's check among the instruments that satisfy the tender requirement for curing a monetary default. Payment by teller's check must occur after notice and no later than two days before the scheduled sale and must equal the amount specified in the cure notice.
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A teller's check is drawn by a bank on another bank or payable through or at a bank. This structure creates a direct bank obligation that reduces the risk of dishonor compared with an ordinary check drawn on a customer's account.
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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.
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Yes. The remitter may assert a claim by delivering a declaration of loss to the obligated bank provided the communication is received in time for the bank to act before payment and the claimant supplies reasonable identification if requested.
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