§ 41-03-48 — (3-411) Refusal to pay cashier's checks, teller's checks, and certified checks

checks.
1. 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.
2. If the obligated bank wrongfully refuses to pay a cashier's check or certified check,
stops payment of a teller's check, or 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.
3. Expenses or consequential damages under subsection 2 are not recoverable if the
refusal of the obligated bank to pay occurs because the bank suspends payments, the
obligated bank is asserting a claim or defense of the bank that it has reasonable
grounds to believe is available against the person entitled to enforce the instrument,
the obligated bank has a reasonable doubt whether the person demanding payment is
the person entitled to enforce the instrument, or payment is prohibited by law.