SEQUOYAH STATE BANK v. UNION NAT. BANK, ETC.

No. 81-68.

621 S.W.2d 683 (1981)

SEQUOYAH STATE BANK, Appellant, v. UNION NATIONAL BANK OF LITTLE ROCK, Appellee.

Supreme Court of Arkansas.

Rehearing Denied November 9, 1981.


Attorney(s) appearing for the Case

Bryan & Fitzhugh, Fort Smith, for appellant.

Smith & Nixon by W. R. Nixon, Jr., Little Rock, for appellee.


ADKISSON, Chief Justice.

The only issue in this case is whether Union Bank by its own initiative can stop payment on a personal money order it had issued in exchange for a hot check and, thereby, cause Sequoyah Bank, a holder in due course, to bear the loss. Under these circumstances the loss must be borne by Union Bank which issued the negotiable instrument to be circulated in commerce.

We do not decide the question of whether the purchaser may stop payment...

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