Summary
In Dziurak v. Chase Manhattan Bank, 44 N.Y.2d 776, 406 N YS.2d 30, 377 N.E.2d 474 (1978), a customer requested the bank to issue a cashier's check payable to his order and, upon issuance, endorsed the check and delivered it to a third party.
Summary of this case from Ward v. First Interstate Bank of RivertonOpinion
Argued March 27, 1978
Decided April 27, 1978
Appeal from the Appellate Division of the Supreme Court in the Second Judicial Department, SALVATORE DE MATTEO, J.
Samuel W. Sherman and Irving A. Cook for appellant.
Andrew J. Connick and Richard C. Tufaro for respondent.
MEMORANDUM.
The order of the Appellate Division should be affirmed, with costs.
A cashier's check is the primary obligation of the issuing bank which, acting as both drawer and drawee, accepts the check upon its issuance. (Matter of Bank of United States, 243 App. Div. 287, 291; Moon Over the Mountain v Marine Midland Bank, 87 Misc.2d 918, 920.) As such, a cashier's check does not constitute an item payable for a customer's account within the meaning of subdivision 1 of section 4-403 of the Uniform Commercial Code. (White and Summers, Uniform Commercial Code, § 17-5, p 579, n 91.) Consequently, respondent was under no legal obligation to honor appellant's order to stop payment. (Bobrick v Second Nat. Bank of Hoboken, 175 App. Div. 550, 553, affd 224 N.Y. 637; Bunge Corp. v Manufacturers Hanover Trust Co., 31 N.Y.2d 223, 234 [dissenting opn, BREITEL, J.]; Kaufman v Chase Manhattan Bank Nat. Assoc., 370 F. Supp. 276, 278.)
Chief Judge BREITEL and Judges JASEN, GABRIELLI, JONES, WACHTLER, FUCHSBERG and COOKE concur in memorandum.
Order affirmed.