The Vermont Statutes Online
The Statutes below include the actions of the 2025 session of the General Assembly.
NOTE: The Vermont Statutes Online is an unofficial copy of the Vermont Statutes Annotated that is provided as a convenience.
(Cite as: 9A V.S.A. § 3-411)
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§ 3—411. Refusal to pay cashier’s checks, teller’s checks, and certified checks
(a) In this section, “obligated bank” means the acceptor of a certified check or the issuer
of a cashier’s check or teller’s check bought from the issuer.
(b) If the obligated bank wrongfully (i) refuses to pay a cashier’s check or certified
check, (ii) stops payment of a teller’s check, or (iii) refuses to pay a dishonored
teller’s check, the person asserting the right to enforce the check is entitled to
compensation for expenses and loss of interest resulting from the nonpayment and may
recover consequential damages if the obligated bank refuses to pay after receiving
notice of particular circumstances giving rise to the damages.
(c) Expenses or consequential damages under subsection (b) of this section are not recoverable
if the refusal of the obligated bank to pay occurs because (i) the bank suspends payments,
(ii) the obligated bank asserts a claim or defense of the bank that it has reasonable
grounds to believe is available against the person entitled to enforce the instrument,
(iii) the obligated bank has a reasonable doubt whether the person demanding payment
is the person entitled to enforce the instrument, or (iv) payment is prohibited by
law. (Added 1993, No. 158 (Adj. Sess.), § 12, eff. Jan. 1, 1995.)