Current through Register Vol. XLI, No. 50, December 13, 2024
Section 112-2-3 - Procedures for Substitute Checks3.1. An agency desiring to obtain a substitute check shall submit a request to the Treasurer.3.2. When the Treasurer is notified that an originally issued state check is erroneous, lost, mutilated, stolen, destroyed, or involves forgery, or that payment is no longer required, the Treasurer shall issue a stop payment order to the financial institution on which the check was drawn.3.3. If the financial institution honors the stop payment order, the Auditor and the Treasurer shall issue the substitute check on the account on which the original check was written.3.4. If the financial institution refuses to honor the stop payment order because the check has been presented and cashed, the Treasurer shall notify the agency of the refusal and shall send a copy of the paid check to the agency. The agency shall notify the payee that the check has already been paid. If the payee claims the check endorsement was forged, the payee shall furnish an affidavit in the form specified by the Treasurer to the agency, which shall submit the affidavit to the Treasurer. If the Treasurer finds the affidavit acceptable and upon completion of an investigation that finds the payee is not at fault, the Auditor and the Treasurer shall issue a replacement check on the account on which the original check was written.3.5. The Treasurer may pursue claims arising out of stolen or forged state checks against any entity involved.