Full question:
If a check is presented at the bank on which the check is drawn, can the bank refuse to cash it unless the holder pays a fee to the bank? I can understand a fee if the check is drawn on a different bank, but I thought a negotiable instrument was an unconditional order to pay a specific sum of money to the person specified or to the bearer when presented. (The bank had no problems with the checks themselves, and in fact cashed them without the fee when I made them payable to my spouse who has an account with the bank). (BTW, my "state" is the US Commonwealth of the Northern Mariana Islands--CNMI).
- Category: Banking laws
- Date:
- State: Colorado
Answer:
Yes, a bank can charge a fee to cash a check, even if it is drawn on that bank. This is especially common for non-customers. However, if the check is presented by someone who has an account with the bank, they may not be charged a fee. The nature of a negotiable instrument is that it is an order to pay a specific sum, but banks have discretion in their policies regarding fees.This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.